LONDON—The dollar eased on Friday, but was still headed for its largest weekly gain in a month, after Federal Reserve officials reiterated their commitment to raising U.S. interest rates more than markets currently anticipate.
It fell against the pound, which edged higher after a volatile session on Thursday following Britain’s budget for tax rises and spending cuts.
St Louis Fed President James Bullard was the latest Fed official to push back on market hopes for a pause in interest rate hikes, saying that even on dovish assumptions, the funds rate needs to rise to at least 5–5.25 percent to curb inflation, from 3.75–4 percent currently….