Dollar Heads for Second Consecutive Weekly Gain Amid Rate Hike Bets

The US dollar's weekly gain is expected to be its second consecutive one since June, driven by rising bets on higher interest rates and a bond selloff that pushed long-term US Treasury yields to their highest levels in over 20 years.

The Dollar Index fell 0.2% to 101.09 on Friday but remains near a two-month high, while the euro rose 0.1% to $1.139 and was heading for its third consecutive weekly decline after touching a two-month low on Thursday.

A strong economy, renewed concerns over energy supplies, and hawkish comments from several Federal Reserve officials have reinforced expectations of higher interest rates, supporting the dollar's gain.