LONDON, Nov 23 Reuters The U.S. dollar held firm on Wednesday ahead of the release of closelywatched minutes from the Federal Reserve39;s latest policy meeting, while the New Zealand dollar strengthened on the back of a record rate rise to curb rampant inflation.

The U.S. dollar index, which measures the currency against a basket of six counterparts, was broadly flat at 107.1, after shedding 0.65 the previous day amid a pickup in sentiment that supported riskier currencies.

The dollar has broadly rallied against every major currency this year, boosted by supersized rate hikes aimed at curbing price rises, but recent coolerthanexpected inflation data has led investors to rein in bets on future rate increases.

Investors will be parsing minutes from the Fed39;s November meeting, due to be released at 1900 GMT, for any hints about the outlook for rates.

At the moment FX traders are likely to be torn between the continued hawkish comments by Fed members and the prospect of what the Fed will do in 2023, currency analysts at Commerzbank said in a note.

The New Zealand dollar gained as much as 0.7, nearing a threemonth high, after the country39;s central bank lifted interest rates by a record amount despite warning the economy might spend an entire year in recession.

The kiwi was last up 0.2 on the day at 0.61640.

The Reserve Bank of New Zealand raised its benchmark rate by 75 basis points to 4.25 the highest of any G10 economy and said it may need to increase faster…