By Kosaku Narioka

The dollar largely maintained its overnight gains against other major currencies Thursday in Asia following its ascent on solid U.S. economic indicators and the Federal Reserve policy meeting minutes that underpinned the speculation for more rate increases.

Strong U.S. durable goods orders and consumer sentiment data on Wednesday bolstered the heightened expectations that the Fed will keep tightening the monetary policy to prevent the economy from overheating.

Minutes from the Fed's November meeting showed that the U.S. economy is showing strength in key sectors, offering the Fed the comfort it has sought to raise short-term interest rates in December.

At 0510 GMT, the euro was at $1.0545, down from $1.0549 late Wednesday in New York, according to EBS. The dollar was at 112.69 yen, up from Y112.45. The sterling was at $1.2438, down from $1.2441.

Speculation for the U.S. President-elect Donald Trump's fiscal stimulus and faster Fed rate increases has triggered broad dollar buying recently.

Yet, some market participants are becoming skeptical about the sustainability of the dollar's advance in the near-term.

"Speculators have been building up big long dollar, short bond, and long stock positions in relatively short-term period. I don't think those positions will be carried beyond the year end," said Toshihiko Sakai, senior manager of forex and financial products trading at Mitsubishi UFJ Trust and Banking Corp.

Mr. Sakai said, though, in the long-run, the dollar's upward trend is likely to continue and the euro could test the parity against the dollar next year.

Interbank Foreign Exchange Rates At 23:50 EST / 0450 GMT

Latest Previous %Chg Daily Daily %Chg

Dollar Rates Close High Low 12/31

USD/JPY Japan 112.72-73 112.50-51 +0.20 112.89 112.40 -6.29

EUR/USD Euro 1.0539-42 1.0551-54 -0.11 1.0560 1.0526 -2.95

GBP/USD U.K. 1.2435-37 1.2441-43 -0.05 1.2448 1.2421 -15.61

USD/CHF Switzerland 1.0178-82 1.0165-69 +0.13 1.0191 1.0162 +1.60

USD/CAD Canada 1.3514-19 1.3486-91 +0.21 1.3523 1.3486 -2.33

AUD/USD Australia 0.7371-75 0.7384-88 -0.18 0.7389 0.7364 +1.18

NZD/USD New Zealand 0.6986-92 0.7002-08 -0.23 0.7012 0.6972 +2.28

Euro Rate

EUR/JPY Japan 118.81-85 118.70-74 +0.09 118.88 118.50 -9.14

Source: ICAP PLC

Write to Kosaku Narioka

(END) Dow Jones Newswires

November 24, 2016 00:47 ET (05:47 GMT)

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