The U.S. dollar was on track for its best weekly gain since September, spurred by expectations of fewer Federal Reserve rate cuts and anticipation that President-elect Donald Trump’s policies could fuel inflation once he assumes office in January. The dollar index hovered close to a one-year high of 106.88, with a weekly rise of 1.8%, as the Fed indicated a cautious approach to easing policy. Fed Chair Jerome Powell noted steady economic growth and a tight job market as reasons to avoid rushing rate cuts. In turn, bets on a December rate cut slipped, while deeper deficit spending and higher trade tariffs expected under Trump’s administration bolstered U.S. Treasury yields, adding further support for the dollar.