SINGAPORE, Oct 27 Reuters The dollar was headed for a weekly gain on Friday, aided by solid U.S. growth figures that bolstered the case for higherforlonger interest rates, while the yen hovered on the weaker side of 150 per dollar ahead of a key policy meeting next week.

The U.S. economy grew at its fastest pace in nearly two years in the third quarter, data on Thursday showed, as higher wages from a tight labor market helped to power consumer spending.

That added to bets the Federal Reserve is likely to keep monetary conditions restrictive for longer, driving the dollar broadly higher against a basket of currencies.

The U.S. dollar index steadied at 106.52, having hit a threeweek high of 106.89 in the previous session, and was on track for a weekly gain of about 0.35.

Certainly, the U.S. economy is a lot more resilient than most expected. It39;s both a blessing and a curse for the Fed, said Christel Rendu de Lint, head of investments at Vontobel.

But certainly, the chances of a soft landing look greater than most anticipated.

Sterling edged 0.09 higher to 1.2139, though was not too far from a threeweek low of 1.2070 hit on Thursday.

The euro gained 0.07 to 1.0567 but was eyeing a weekly loss of 0.25.

The European Central Bank ECB on Thursday left interest rates unchanged as expected, ending an unprecedented streak of 10 consecutive rate hikes.

With a rapidly deteriorating macroeconomic landscape, as shown by October PMIs, in our view the ECB will have to…