* US dollar stays near recent highs on U.S. growth hopes
* US dollar touches 2-month high of 91.87 yen
* Markets await U.S. consumer sentiment, housing data (Updates prices, adds comment, changes byline, changes dateline, previous LONDON)
By Wanfeng Zhou
NEW YORK, Dec 23 (Reuters) - The U.S. dollar edged lower against major currencies in preholiday-thinned trade on Wednesday as investors sought to book profits after the greenback's recent gains.
The dollar climbed to its highest level in more than three months against a basket of six major currencies on Tuesday as optimism about the U.S. economy stoked expectations the Federal Reserve may raise its borrowing costs sooner rather than later.
"Over the past 5 trading days, the U.S. dollar has become very overbought," said Kathy Lien, director of currency research at GFT Forex in New York.
"With the euro/dollar closing in on support below 1.42, the lack of meaningful catalysts to push the dollar even higher has led to profit taking on long dollar positions," she said.
Trading was extremely thin as Tokyo markets were closed for a national holiday and as many market players elsewhere had already wound down for the Christmas holidays and year-end.
A report showing U.S. consumer spending rose by less than expected in November put slight pressure on the dollar, but the overall reaction was limited. See [ID:nN23149079].
Data on U.S. consumer sentiment and new home sales will be released later in the session.
"Overall, we're looking for trade to be rather quiet, probably in the ranges between $1.4250 and $1.4350 (for euro-dollar) for the next several trading sessions," said Greg Salvaggio, senior vice president of capital markets at Tempus Consulting in Washington.
In early trading, the euro was up 0.3 percent at $1.4289
Traders were eyeing the 200-day moving average at $1.4194, a break of which could see it retreat to the $1.4000/1.4044 area.
The ICE Futures U.S. dollar index, which values the greenback against a basket of six currencies, was down 0.2 percent on the day at 78.078 <.DXY>, near a 3-1/2 month peak of 78.449 hit the previous day.
The dollar last dropped 0.2 percent to 91.68 yen, after
climbing to 91.87 yen
Traders said the dollar's upside was hindered so far by Japanese exporter offers near 92.00/30 yen. (Additional reporting by Tamawa Desai in London)