The dollar was set to end 2015 with a more than 9 percent annual gain against a basket of currencies on Thursday, despite a small decline in December, with portfolio rebalancing from asset managers leading the currency higher in thin trading. Riding a rally dating back to May 2014, the greenback has appreciated by a quarter in value against a basket of currencies and by over 20 percent against the euro. For the year, the greenback is up about 10 percent against the euro.

On Thursday, the euro hit a more than one-week low against the dollar of $1.08750, with analysts attributing the move to purchases of dollar-denominated assets from money managers moving to meet minimum exposure requirements. "It would be consistent to see a portfolio rebalancing that may imply a greater exposure to the US dollar," said Mazen Issa, senior currency strategist at TD Securities in New York.

Against the yen, the dollar hit a more than two-month low of 120.005 yen. Analysts said weaker-than-expected US Chicago Purchasing Managers' Index data drove demand for the safe-haven Japanese currency. The dollar index, which measures the greenback against a basket of six major rivals, hit a more than one-week high of 98.564. Trading volumes remained thin heading into year-end.

The dollar set a more than one-year high against the Russian ruble on Thursday of 74.32 rubles after weakness in oil prices early in the session. Russia is a key oil exporter. The dollar was last up 0.87 percent against the Swiss franc at 0.99700 franc after hitting a more than three-week high of 0.99940 franc.

Copyright Reuters, 2016