The dollar knocked against multi-month highs on Wednesday as key U.S. inflation data loomed, while strong figures from Hewlett Packard helped to reinforce a strong Wall Street finish, boosting European shares. Fears of hedge fund losses continued to swirl, boosting safe-haven buying of dollar assets and keeping U.S. Treasury yields near a three month low. The dollar hit a six-month high against the British pound after minutes from the Bank of England showed little official appetite for another UK interest rate rise following weak economic data that has even raised the prospect of a cut. The dollar also rose before U.S. consumer price data at 1230 GMT to a seven-month high against an index of currencies, as investors anticipated further U.S. interest rate hikes and scaled back their expectations for an imminent revaluation of China's yuan. That was after a report on Tuesday showed U.S. producer prices surging and the U.S. Treasury's hotly-awaited semiannual report on foreign currency regimes was not as critical of China as some had expected. "There is a lot of momentum that is positive for the dollar at the moment," said Steven Saywell, chief currency strategist at Citigroup. "The market is concentrating on dollar-positive news and ignoring dollar-bearish news."