Dollar Zooms Higher as Markets Brace for Higher for Longer Rates

U.S. one-dollar banknotes are seen in front of a stock graph in this illustration taken on Feb. 8, 2021. Dado Ruvic/Illustration/Reuters

LONDON—The dollar shot higher on Monday, briefly scaling fresh 20-year highs against a basket of other currencies, as Federal Reserve Chair Jerome Powell signaled interest rates would be kept higher for longer to bring down uncomfortably high inflation.