Dollar backs off 17-month peak on profit-taking

Dollar fell in European trade against a basket of major currencies away from 17-month highs, on track for the first loss in three days on profit-taking operations, while traders await the Federal Reserve's meeting this week. 

The dollar index rose 0.35% to 97.10, with an intraday high at 97.50. 

The dollar closed up 0.4% on Friday, the second profit in a row, marking 17-month highs at 97.71 against a basket of main currencies after upbeat retail sales data. 

The dollar added 0.9% last week, the second profit in three weeks as US treasury yields rebounded on Fed rate hike prospects. 

The Federal Open Market Committee is scheduled to meet on December 18-19, with analysts expected the fourth rate hike of the year to below 2.25%. 

The Fed will also release three-year forecasts for growth, inflation, unemployment, and interest rates.