FOREX-Dollar heads for weekly gain as rate cut optimism cools

The dollar was on track to rise for the week on Friday, adding to solid gains so far this year, as the U.S. economy and pushback from central bankers has caused traders to dial down expectations of swift falls in interest rates. Japan's yen has been the biggest loser: it is now down around 5% for the year so far as tepid economic data and a deadly earthquake have sapped confidence that the Bank of Japan is about to hike rates. "The thumping message from U.S. activity data and central bankers is that markets are too aggressively priced for rate cuts in 2024," said Westpac's head of foreign exchange strategy Richard Franulovich.