LONDON, Feb 20 Reuters The dollar edged lower on Monday but remained close to Friday39;s sixweek high, as a recent flurry of positive economic data reinforced market expectations of tighter monetary policy from the Federal Reserve.

The U.S. dollar index , which measures it against six other major currencies, slipped 0.14 to 103.83, though is up almost 1.8 for the month, keeping it on track for its first monthly gain since last September. It hit a sixweek high of 104.67 on Friday.

Liquidity is expected to be thin on Monday, with U.S. markets closed for Presidents39; Day.

A slew of data out of the world39;s largest economy in recent weeks pointing to a stilltight labour market, sticky consumer prices, robust retail sales and higher producer prices, have raised expectations that the U.S. central bank has more to do in taming inflation, and that interest rates would have to go higher.

But with markets now expecting the Fed funds rate to peak just under 5.3 by July, analysts said the move in the dollar may have run its course for now.

The dollar has had quite a big move this month on the back of rates repricing and the question is how much further that39;s going to run, said Chris Turner, global head of markets at ING.

I39;d say the majority of what we39;re calling a 39;corrective rally39; in the dollar has been seen, Turner added.

Hawkish comments from Fed officials have also underpinned the U.S. dollar, as they signalled interest rates would need to go higher in…