The dollar is heading to a two-year summit after the minutes of the Federal Reserve meeting

The dollar is set to hit a two-year high against a basket of major currencies on Thursday after the Federal Reserve’s meeting minutes revealed that the US central bank was preparing to act aggressively to combat inflation, while commodity-linked currencies fell.

The euro remained near a one-month low of less than $1.09 as investors awaited the outcome of the European Central Bank meeting later.

By 1045 GMT, the dollar index recorded 99.676 after reaching 99.823, its highest level since May 2020.

The Australian dollar fell 0.5%, while the New Zealand dollar fell 0.2%.

The euro hit a one-month low of $1.0865 and was last down 0.1 percent to $1.0887.

The Japanese yen was stuck near a one-week low and last recorded 123.80 against the dollar.

The sterling compensated part of its losses to trade up 0.1 percent at $1.3075.

A sell-off in stocks and other risky assets this week also weighed on cryptocurrencies. Bitcoin rose 0.5% to $43,402 after falling 5% on Wednesday.