By Kosaku Narioka

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

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

Minutes from the Fed's November meeting showed strength in key sectors of the U.S. economy, hardening the case for an increase in short-term interest rates in December.

Read: Fed VIPs saw rate hike coming 'relatively soon,' November FOMC minutes show (http://www.marketwatch.com/story/fed-vips-saw-rate-hike-coming-relatively-soon-november-fomc-minutes-show-2016-11-23)

The euro was at $1.0541, down from $1.0549 late Wednesday in New York, according to EBS. The dollar was at Yen112.83, up from Yen112.45. The British pound was at $1.2431, down from $1.2441.

Read:Don't blame the dollar when the Trump rally gets smashed, in one chart (http://www.marketwatch.com/story/trump-rally-has-99-problemsbut-the-dollar-isnt-one-in-a-chart-2016-11-22)

Speculation over fiscal stimulus to come from U.S. President-elect Donald Trump and expectations for 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 [a] 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.

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

(END) Dow Jones Newswires

November 24, 2016 01:56 ET (06:56 GMT)

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