Dollar heads for weekly gains as US-China talks progress

The dollar is heading for weekly gains against most major currencies on Friday, after a US-UK trade deal raised hopes for progress in the looming US-China trade talks.

Bets on an imminent US interest rate cut receded after the Federal Reserve indicated it was in no rush.

Financial markets are heading into the weekend with full focus on trade negotiations between Washington and Beijing, which are scheduled to begin on Saturday in Switzerland, according to Reuters.

The euro was steady in Asian morning trading, down 0.6% on the week to 1.1217 against the dollar. The yen lost about 0.7% this week, reaching a one-month low of 146.18 against the dollar, before settling around 145.78. The British pound, which had rallied on news of an imminent US-UK trade deal, was pared when the agreement proved to be limited, hitting a three-week low of 1.3220 to the dollar in early trading today.