By Chelsey Dulaney

The dollar rose Tuesday, supported by upbeat economic data in quiet trading.

The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.2% to 93.39. Trading was thin as markets in the U.K., Canada and Hong Kong remained closed.

The dollar index is on track to end 2016 with a more than 3% gain. The greenback has been propelled to 14-year highs by president-elect Donald Trump's policy proposals and the Federal Reserve's more hawkish interest-rate outlook.

Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, said banks' demand for dollars heading into the end of the year could boost the dollar this week.

"However, given the low volumes, there is a risk of choppy and often erratic moves in global markets," said Mr. Esiner in a research note. "There remains a risk of a pullback if the market becomes disappointed with the pace of progress from the new Trump Administration."

Data released Tuesday showed the U.S. consumers remain optimistic about the economy.

The Conference Board's consumer confidence index rose to its highest level since 2001 in December, following a sharp increase the prior month.

Separately, the S&P CoreLogic Case-Shiller Indices showed home prices went up sharply in October, as the market showed no signs of slowing after setting a record a month earlier.

Write to Chelsey Dulaney at

(END) Dow Jones Newswires

December 27, 2016 16:34 ET (21:34 GMT)

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