LONDON (May 20): The dollar headed for a third straight week of gains on Friday, with more hints that a  US interest rate rise is nearing keeping it close to two-month highs after it strengthened past US$1.12 ($1.55) per euro for the first time since March.  

The Swiss franc, the largest beneficiary among currencies of the shakiness that has dominated the global economy since the 2008 financial crash, was set to close at its weakest since a dramatic revaluation in January of last year.

Britain's pound, on course for its strongest week against the euro since last October after fears about next month's vote on EU membership abated, sank half a percent in early trade.

Overall the mood was one of consolidation after a week of volatility driven by the changes in the UK Brexit polls and a revival of expectations for rises in US rates.

"The dollar is rebounding and will remain on a stronger footing," said Lee Hardman, a strategist with Bank of Tokyo Mitsubishi in London.

"We believe they (the Federal Reserve) are going to raise rates in June or July. We had thought they would wait for the Brexit vote to be out of the way, but that looks more questionable now."