Dollar Starts 2009 Edging Higher

In Britain, house prices fell in 2008 at their fastest rate for at least 25 years, according to the country's biggest mortgage lender. Home prices fell 16.2% in the fourth quarter. Meanwhile, the Chartered Institute of Purchasing and Supply said that Britain's manufacturing sector suffered its second worst month since 1992 in December, but was up slightly to 34.9 from 34.5 in November. The Bank of England also said that banks' lending to businesses and consumers tightened up in the last three months of the year despite record interest-rate cuts.

The BoE has shaved 3%age points off its benchmark rate since October, and is approaching parity with the euro for the first time since the common currency's launch in 1999.

In other New York trading, the dollar nudged up to 90.96 Japanese yen from 90.90 yen in New York on Dec. 31, edged higher to 1.2158 Canadian dollars from 1.2142, but dipped to 1.0707 Swiss francs from 1.0721

>To order reprints of this article, click here: Reprints