By Ira Iosebashvili

The dollar edged lower Wednesday as investors locked in profits after a series of big gains.

The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.2% to 93.23 with losses against the euro and yen.

Expectations that the Federal Reserve will raise rates at a faster pace next year pushed the dollar to a fresh 14-year high Tuesday. Most investors believe the dollar is likely to resume its ascent, as forecasts for a more aggressive Fed dovetail with plans for more fiscal spending and tax cuts with the incoming Trump administration.

For now, however, "we suspect the rally has run too far, too fast inthe short term and the greenback is ripe for a mild drawdown," analysts at TD Securities wrote in a note to clients.

Reports due Thursday, including November durable-goods orders and a final reading of third-quarter U.S. gross domestic product, should give a better indication of whether the dollar has scope to move higher in the short term, analysts said.

The euro was up 0.4% at $1.0426. The dollar was down 0.3% at Yen117.54.

Write to Ira Iosebashvili at ira.iosebashvili@wsj.com

(END) Dow Jones Newswires

December 21, 2016 17:16 ET (22:16 GMT)

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