The dollar paused for breath on Wednesday after surging with bets on higher rates when Jerome Powell was picked for a second term as Federal Reserve chair, while the New Zealand dollar was on edge ahead of a central bank decision on a rate-hike path. In emerging markets, the Turkish lira has collapsed and fell more than 11% in one session overnight, setting the scene for further capital outflows and possibly putting pressure on EM currencies globally. Among majors the market has steadied after the dollar's jump. The greenback touched a more-than-four-year high of 115.19 yen on Tuesday as two-year Treasury yields surged to their highest levels since March 2020 and Fed funds futures priced in as many as two rate hikes next year. Markets think Powell is more likely to respond sooner and harder to inflation than Lael Brainard - the other contender for the job, who has been nominated as vice chair. The euro , which has been hammered in recent weeks by a growing gulf in the economic and monetary policy outlook on either side of the Atlantic, earned a small reprieve from stronger-than-expected business growth surveys.