(Updates prices, adds comments; changes byline, dateline, pvs
* Dollar consolidates after hitting 14-year highs vs euro
* Euro about 4 pct from parity with dollar
* Greenback gains vs Canadian dollar
* Graphic: World FX rates in 2016 tmsnrt.rs/2egbfVh
By Sam Forgione
NEW YORK, Dec 16 The U.S. dollar edged higher
against a basket of major currencies on Friday, holding near
14-year highs touched after Wednesday's Federal Reserve meeting,
with profit-taking halting the momentum of the greenback's
The dollar index, which measures the greenback
against a basket of six major rivals, was last at 103.140, not
far from Thursday's 14-year high of 103.560 but up only 0.12
percent on the day in the wake of Wednesday's Fed decision.
The index gained 1.2 percent on Thursday to mark its biggest
daily percentage gain in nearly six months a day after the U.S.
central bank raised interest rates for the first time in a year.
The Fed also signaled it was likely to increase rates three more
times in 2017, up from the two increases forecast at the central
bank's September meeting.
The projections, combined with expectations that U.S.
President-elect Donald Trump's incoming administration may boost
U.S. economic growth with fiscal stimulus, sent the dollar
shooting higher and brought parity with the euro back in play.
Profit-taking ahead of the weekend and expectations of a
squeeze on dollar liquidity heading into year-end dampened the
dollar's gains on Friday, analysts said.
"We've had such big moves," said Axel Merk, president and
chief investment officer of Merk Investments in Palo Alto,
California. "People are squaring positions."
The euro was last flat against the dollar at $1.0410 after
hitting a nearly 14-year low of $1.0364 Thursday, while the
dollar was flat against the yen at 118.19 yen after hitting a
roughly 10-1/2 month high of 118.66 yen Thursday. It gained 0.4
percent against the Canadian dollar to C$1.3382.
Only 10 of more than 50 polled by Reuters earlier this month
forecast the dollar reaching parity with the euro within the
next 12 months. On Friday that threshold was only about 4
But given the scale of the moves in the past month, driven
on by volatility around last week's European Central Bank
meeting and the Italian constitutional referendum, many players
may now be content to walk away until January.
"We're probably starting to thin out for the holidays as
well, so there are some people taking some profits," said Win
Thin, global head of emerging market currency strategy at Brown
Brothers Harriman in New York.
Against the Swiss franc, the dollar was last down 0.04
percent at 1.0294 francs after touching 1.0344 francs on
Thursday, its highest since August 2010.
(Reporting by Sam Forgione; Additional reporting by Patrick
Graham in London; Editing by Chizu Nomiyama)