Dollar set for third week of gains as US debt talks loom large

The dollar was set to gain for the third consecutive week on Friday, even though it fell back, as markets bet on higher interest rates to counter inflation and waited for the outcome of last-ditch talks on the US debt ceiling. Congress and President Joe Biden’s discussions aimed at reaching an agreement have progressed. However, there is still concern about monetary policies, amid a projected delayed rate cut. Larry Fink, CEO of investment giant BlackRock, has suggested that the Fed may have to raise rates if US inflation remains at 4%.