By Tom Westbrook SYDNEY (Reuters) – The dollar is set to notch broad weekly gains and could extend its rally if U.S. labour data due on Friday reinforces the case for early Federal Reserve interest rate hikes. The yen has been the most prominent casualty in the first trading week of the year, as investors reckon the Bank of Japan is likely to lag most of all on rate hikes. But firming expectations that the Fed could raise rates as soon as March and several times this year is pushing up U.S. yields and the currency. The greenback hit a five-year peak on the yen at 116.35 on Tuesday and hovered …

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