* Dollar retreats from a 14-year-high on profit-taking
* Several U.S. economic indicators due Thursday
* Euro eyes Italy's move on Monte Paschi di Siena
By Yuzuha Oka
TOKYO, Dec 22 The dollar slipped from its
14-year-high against a basket of currencies on Thursday as
investors took profits ahead of holidays and a big batch of U.S.
economic data due later in the day.
The dollar index, which measures the greenback
against six major rivals, last stood at 103.02. It has receded
from the 103.65 marked on Tuesday, its highest since December
Still the dollar's decline was limited as the Federal
Reserve signalled more frequent rate hikes in 2017, partly on
expectations for faster economic growth under the incoming Trump
While trade is expected to slow down ahead of Christmas, the
market's near-term focus is on a big batch of U.S. economic data
due on Thursday, including revised GDP for July-Sept, durable
goods orders for November, and weekly initial jobless claims.
"The market is relatively quiet on a holiday mood, but if
the U.S. economic data is worse than the market expects, the
dollar is likely to be sold further," said Kumiko Ishikawa, FX
market analyst at Sony Financial Holdings.
The dollar index has gained more than five percent since the
Nov. 8 U.S. election, as traders have bet that Trump will step
up fiscal spending and stoke higher inflation.
The euro was up 0.1 percent at $1.0430, rebounding
from $1.0352 on Tuesday, the lowest since January 2003.
The common currency could come under pressure as investors
contemplate the future of the ailing Monte dei Paschi di Siena
Italy's third largest lender.
The world's oldest bank has all but failed to pull off a
last-ditch private sector rescue plan, making a state rescue for
look inevitable, sources said on Wednesday.
Prime Minister Paolo Gentiloni's new government is likely
to meet this week to issue an emergency decree to inject capital
into the bank, which the European Central Bank has judged the
weakest of the euro zone's major banks.
But such state aid could prove to be politically explosive
given that investors are required to bear losses under EU
bailout rules and could undermine confidence in the country's
wider banking sector, wich is saddled with a third of the euro
zone's total bad loans.
The greenback stood 117.58 yen against the yen,
retreating from 10-1/2 month high of 118.66 yen set last week.
The Swedish crown booked its biggest gains in about 10
months versus the euro on Wednesday after Sweden's
central bank voted by a small margin to extend its bond purchase
The euro fell almost 1 percent to 9.6077 crowns on
Wednesday, its biggest one-day drop since February. The euro was
last down 0.1 percent against the crown at 9.6173 crowns.
(Reporting by Yuzuha Oka; Editing by Eric Meijer)