SINGAPORE, Feb 16 Reuters The dollar firmed on Friday after two days of declines but was still on track for its fifth straight weekly gain as investors scaled back expectations for Federal Reserve rate cuts, while the yen was anchored around the key 150 per dollar level.

The dollar had come under pressure after mixed U.S. data, with retail sales falling more than expected in January, while a separate report underscored labour market tightness.

Some analysts said the U.S. currency39;s rebound could have run out of steam.

The dollar retracement has been much greater than the retracement in U.S. yields and that might mean there are limits to further dollar strength over the nearterm, said Derek Halpenny, head of research, global markets EMEA at MUFG.

Still, in a backdrop of near recessionary conditions in Europe and Japan and a real estate crisis in China, we would continue to see upside risks for the dollar, he added.

The dollar index , which measures the U.S. currency against six major rivals, was up 0.1 at 104.33 on Friday, having eased around 0.6 the two previous days. The index is on course to eke out a 0.23 gain for the week, its fifth in a row.

Federal Reserve chair Jerome Powell remarks early this month and strong U.S. data has quashed expectations of early and deep rate cuts from the Fed.

Traders are now pricing in a 53 chance of a rate cut in June, according to the CME FedWatch tool, while had initially priced in March as the starting point of the Fed39;s…