The dollar was set for its biggest weekly gain in over a month on Friday, supported by expectations of fewer Federal Reserve rate cuts and the view that President-elect Donald Trump's policies could stoke U.

Federal Reserve Chair Jerome Powell said Thursday that interest rates are still expected to decline further, but suggested they might not be that much lower over the next few months.

A strong economy is giving Federal Reserve officials room to move “carefully” as they lower interest rates, the central bank chair said.