LONDON—The dollar consolidated gains on Friday and was on track for its biggest weekly rise in seven months as bets of higher interest rates fuelled the U.S. unit’s gains versus rivals. With money markets pricing 32 bps of rate hikes in March and as many as 124 bps in cumulative increases before the end of the year, the dollar was in the limelight even as broader currency markets quietened somewhat after an eventful week in global markets punctuated by a hawkish Federal Reserve meeting. U.S. Treasury yields steadied in London trading with 10-year yields edging slightly higher but staying well below the two-year peaks of nearly 1.9 percent hit on Monday. “The market has interpreted the Fed chair’s comments in a hawkish manner even though (Jerome) Powell’s comments has mainly affected the expectation of the speed of the rate cycle, but not so much the extent of this cycle,” Commerzbank …
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