While the US central bank has indicated that it sees three rate hikes this year, markets appear to be expecting fewer hikes given lagging inflation. It's up another 0.8 percent at $1.2113, just shy of its earlier high of $1.2138, its highest level since the end of 2014.
The euro surged more than half of a percent against the dollar on the comments, with investors taking the relatively hawkish statement as a further signal that the European Central Bank will wind down its 2.55 trillion euro bond purchase scheme this year if growth continues to roar ahead.
In Europe, Germany's DAX fell 0.1 percent to 13,196 while Britain's FTSE 100 rose 0.2 percent to 7,777. The dollar weakened more broadly after USA data showed a rise in jobless claims and a decrease in producer prices.
The minutes from the ECB's December meeting said the central bank should revisit its communication stance in early 2018 and gradually adjust its language to reflect improved growth prospects.
MSCI's index of European stocks index eked out a 0.1 per cent gain as the euro hit its highest in three years at $1.2128 and last traded up 0.8 per cent at $1.2126.More news: China's trade with North Korea dropped sharply in 2017
USA stocks were higher in early trading after the S&P 500 suffered its first down day of the year on Wednesday.
The dollar index was down by 0.05% to 91.81 as of 11.57am Shanghai time.
Treasury yields fell on Thursday after China disputed a report that its government officials had recommended the country slow or halt its purchases of US bonds.
Rising bond yields and some disappointing corporate earnings also weighed on markets.
It dropped again as the session wore on but was still close to five-month highs at 0.52 percent. Benchmark U.S. crude slipped 37 cents to $63.55 a barrel in electronic trading on the New York Mercantile Exchange.More news: Donald Trump under fire over 'racist' outburst in immigration meeting
While the message has been vague and QE tapering by no means assured, traders have nonetheless bought up the Euro on this news, leading to a rally for the EUR/USD exchange rate among others.
Spot gold was up 0.5 percent at $1,322.74 an ounce by 1:37 p.m. EST (1837 GMT) after touching $1,326.56 on Wednesday, the highest since September 15.
Oil prices retreated from big gains the previous day but still traded near three-year highs on signs of tightening supply in the United States.
But growth is into its fifth year, employment is at a record high and convergence between the 19-member currency bloc's core and periphery has restarted, all pointing to unabated growth and a declining need for central bank help.
Trading got under way with news that German Chancellor Angela Merkel's conservative CDU party has reached an initial deal with Martin Schulz's center-left SPD for formal coalition negotiations.More news: Kentucky Is First State Granted Approval For Medicaid Work Requirements