The dollar ended 2015 with a more than 9 percent annual gain against a basket of currencies on Thursday, despite falling in December, with portfolio rebalancing from asset managers leading the currency higher in thin trading.
Riding a rally dating to May 2014, the greenback has appreciated by a quarter in value against a basket of currencies and by 22 percent against the euro. For the year, the greenback rose over 10 percent against the euro for its second straight yearly gain.
On Thursday, the euro hit a more than one-week low against the dollar of $1.08530, with analysts attributing the move to purchases of dollar-denominated assets from money managers moving to meet minimum exposure requirements.
"Portfolio rebalancing absolutely has something to do with the dollar's strength," said Sireen Harajli, currency strategist at Mizuho Bank in New York, referring to Thursday's gains.