Investing.com - The dollar regained momentum lost during the last two weeks against a basket of six major currencies on Monday. But forex trading was thin today due to many markets, here and abroad, being closed for the New Year's Day holiday.
The dollar rose two cents to as high as $1.07, before retreating on intraday trading.
The euro edged down a tad on Monday to $1.0513. The dollar index climbed a quarter of a percent to 102.43, nearing its 14-year-high of 103.65.
The greenback finished 2016 at 14-year highs on market expectations that the Fed will increase rates three times this year, and that incoming President Trump will stoke growth and inflation with a program of investment in infrastructure.
The dollar finished the year with an almost 4% annual rise, the fourth consecutive year of gains.
But the dollar index which measures the currency against six major rivals lost more than 1% during the last three days of last week, its weakness made worse on Friday during a surge for the euro, through computer trading, on low volumes of trading in Asia.
There was a sense of a market correction from Europe this morning, and movement in price was not based on changes in the underlying fundamentals, according to Commerzbank (DE:CBKG) currency strategist Esther Reichelt, based in Frankfurt.