By Tom Westbrook SINGAPORE, May 17 (Reuters) – The dollar was firm on Wednesday, supported by a safety bid as the U.S. hurtled toward its borrowing limit and boosted after solid economic data had traders trimming bets on imminent rate cuts. The dollar hit a two-week peak of 136.69 yen overnight and hovered just below that at 136.35 early in the Asia session. It also broke above its 50-day moving average against the euro to trade at $1.0866 per euro. President Joe Biden and top congressional Republican Kevin McCarthy have edged closer to a deal to avoid a U.S. debt default – but nothing is clinched yet and ironically the risk the U.S. fails to pay debts has put a bid under the currency. “The dominance of the dollar in the global payments system provides a strong explanation as to why,” Rabobank strategist Jane Foley said. “A crushing blow to the world’s number one economy can only have negative…
