Over the past 24 hours, the US currency has rebounded against rivals to reach a six-week high as doubts deepen as to whether the Federal Reserve will announce interest rate cuts later this year.

The dollar traded at 121.65 yen after rising to 121.73 yen earlier on in trading, also reaching $1.3455 per euro.

Comments made earlier this week by Federal Reserve Bank president Jeffrey Lacker appeared to hint that the bank is in no rush to lower fund rates from 5.25 per cent.

Meanwhile, the sterling rose against the US after a six-week low, trading at between $1.9704 and $1.9749.

Later today, the Bank of England is expected to issue its meeting minutes, confirming speculation around the recent interest rate rise.

The minutes are likely to confirm that eight members of the Monetary Policy Committee chose to raise rates while one member opted to keep the interest levels unchanged.

Another hike is expected in September, with speculation rising that interest levels could reach six per cent by the end of the year.