Feb 23 Reuters The U.S. dollar was on track to record its first weekly fall in 2024 on Friday, as investors took a breather after almost two months of rises built on subsiding expectations for future Federal Reserve rate cuts.

The greenback has bounced this year as strong economic data and warnings from Fed officials the inflation fight was not over supported expectations that rate cuts will be pushed out to June or later in the year.

Some analysts recently flagged that the dollar retracement in 2024 has been more significant than in U.S. yields, and further strength over the near term was limited.

It39;s not the time yet to sell the dollar, but we think it will start to weaken in the second quarter, assuming that the Fed will cut in June and continue cutting rates once a quarter, Athanasios Vamvakidis, global head of G10 forex strategy at BofA Global Research, said.

BofA expects the euro to strengthen to 1.15 versus the greenback by the end of the year.

If the U.S. economy remains so strong, we have to change our view, as the Fed might not be able to cut in June or not even this year, he added.

The dollar index , which measures the U.S. currency against six others, dropped 0.03 to 103.89 and was set to record its first weekly fall, 0.38, since the end of December.

Some analysts argued that increasing riskappetite was the main reason behind this week39;s dollar correction as the U.S. currency is seen as a safehaven asset.

Global shares capped a recordbreaking…