* Dollar falls more than 1 percent vs euro and yen
* Traders postioning ahead of next week's Fed meeting
(Recasts with dollar falling against yen, sterling and euro in
thin trading)
By Dion Rabouin
NEW YORK, Dec 9 (Reuters) - The dollar fell sharply on
Wednesday as investors cleared out long positions on the
greenback against the yen, sterling and euro in thin trading,
with each rising more than 1 percent.
The dollar also fell 1 percent against the Swedish crown
SEK= and Norwegian crown NOK= , which rebounded from a
13-year low against the dollar on Tuesday.
The market moves were largely technical, said Greg Anderson,
global head of FX strategy at BMO Capital Markets in New York,
saying they reflected positional trading and investors taking
advantage of overbought positions for the dollar.
"This is just an old-fashioned clean-out in a thin market
that's jittery ahead of next week," Anderson said.
The anticipated Federal Reserve interest rate hike next week
has investors largely betting on dollar strength, Anderson said,
allowing technical traders to take profit on short dollar
trades.
The euro EUR= increased 1.2 percent, last trading at
$1.1025, and sterling added 1.18 percent, to $1.5182. The dollar
fell 1.45 percent against the yen JPY= , to 121.14 yen.