KUWAIT, Jan 4 (KUNA) -- The Central Bank of KuwaitCentral Bank of Kuwait devalued the Kuwaiti Dinar this morning to 0.27785, following the sharp increase of the US Dollar last week,according to the weekly monetary report issued here on Sunday by the National Bank of Kuwait

As to foreign currencies, the US Dollar entered the first trading day of 2009 on a firm footing. Amid holiday-thinned and choppy trade, the Dollar posted gains against the Sterling and Euro on Friday, reversing some of its recent sharp losses. The Euro dropped to 1.3837 after reaching a high of 1.

The Sterling Pound ended the week at 1.4548 after trading between the high and low 1.4790 and 1.4350 through out the week. The Japanese Yen traded in a very narrow range between 89.73 and 92.40 as the Japanese market was closed for most of the week. Finally, the Australian Dollar and Swiss Franc range traded between 0.6835 to 0.7118 and 1.0367 to 1.0845, respectively.

The US treasury department promised a USD 5 billion in Troubled Asset Relief Program (TARP) funds in an effort to help stabilize General Motors financing arm GMAC, and an additional USD 1 billion to GM to help facilitate the transition of GMAC into a bank holding company.

The US house prices in November are down 18 percent compared to a year ago, according to the SP Case-Schiller index, with the 20 city composite index falling to a reading of 158.16.

The US consumer confidence index fell to an all-time low of 38.00 in December, following November's revised reading of 44.70.

Initial claims for unemployment benefits fell to 492,000 in the week, following a 16-year high of 586,000 claims recorded last week.

The dip ends a seven week streak above the half million mark. Finally, the Institute of Supply Management (ISM) manufacturing index was extremely weak, as it fell from 36.20 to 32.40, its lowest level since the 1980 recession.

The US Dollar 3-months LIBOR was down to 1.4125 percent on Friday, the lowest level since June 2004, while the overnight rate was also down to 0.

Oil prices fell by 8 percent on Friday reversing part of its 14 percent surge on the last day of 2008, to trade around USD 40 per barrel. In 2008, oil prices touched a record peak of USD 147 before falling by more than USD 110.

The single currency was hurt on Friday following worse-than-expected manufacturing data from the Euro-zone, reaching a low of 1.3837.

An overall quiet week in the Euro zone with few figures released. The Euro-zone's Purchasing Managers Index (PMI) for the manufacturing sector slumped to 33.90 in December, the lowest in 11 years and well below the 34.50 estimates.

The Pound came under pressure last week dropping to 1.4350 levels against the US Dollar, as more bad data reinforced expectations that the Bank of England will cut interest rates by at least 50 basis points in their next meeting on Thursday.

UK house prices fell by a record 16.20 percent in December, the lowest level since 2004, according to Halifax, the country's biggest mortgage lender.

The UK manufacturing sector contracted for an eighth consecutive month as new orders plummeted, and firms shed workers at the fastest rate since 17 years.

The Yen traded in a small range between 89.70 and 92.40 in a generally quiet market.

There were no economic indicators last week in Japan, as the market was closed for most of the week.

© Copyright Kuwait News Agency 2009.

 

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