FOREX-Dollar headed for second weekly gain on tempered rates outlook

The dollar headed for a second weekly gain in a row on Friday as signs of resilience in the U.S. economy and caution about rate cuts from central bankers had traders dialling back expectations of swift and sharp falls in interest rates. "The thumping message from U.S. activity data and central bankers is that markets are too aggressively priced for rate cuts in 2024, both on timing and in magnitude," said Westpac's head of foreign exchange strategy Richard Franulovich.