2008.12.2406:42:00UTC+00Dollar Slides To 5-day Low Against Swiss Franc

During early deals on Wednesday, the dollar fell to a 5-day low against the Swiss franc as gloomy US and UK reports increased concerns about a deep global economic slowdown. The dollar also slipped against the euro and the yen, while recovered early losses against the pound.

In quiet trade ahead of the Christmas holidays, traders await US durable goods orders, personal income and spending reports-all for the month of November and the weekly jobless claims report, which are expected to influence trading in the New York session today. .

The US dollar weakened against euro during early deals on Wednesday. At about 6:10 am ET, the dollar fell to 1.4005 per euro, compared to yesterday's close of 1.3927. The next downside target level for the dollar is seen at 1.413.

The dollar, which closed yesterday's trading at 1.0890 against the Swiss franc slipped to a 5-day low of 1.0778 in early deals on Wednesday. On the downside, 1.042 is seen as the next target level for the dollar.

The dollar dropped to 1.4809 against the pound before bouncing back at 1:25 am ET Wednesday. The dollar reached a high of 1.4662 per pound by about 5:50 am ET and this may be compared to yesterday's close of 1.4734. If the dollar advances further, it may likely target the 1.468 level.

The pound ticked down as Britain's Royal Institution of Chartered Surveyors said today that the house prices may fall about 10 percent next year as the country's recession deepens.

At the same time, RICS predicts property sales to rise by 10% next year. Lenders are likely to remain cautious and increasingly gloomy economic picture suggest that house prices will continue to decline in 2009, the report showed.

According to British Bankers' Association, the number of house purchases approved in the UK fell to 17,773 in November from 20,767 in the previous month. Approvals for re-mortgaging in November were almost half what they were in October and the previous six months.

The dollar that closed yesterday's trading at 90.97 against the yen declined to 90.25 during early deals on Wednesday. On the downside, 89.1 is seen as the next target level for the dollar-yen pair.

In economic news from Japan, an index measuring sentiment among large companies fell sharply in the fourth quarter of 2008, data released by the Cabinet Office revealed today, touching its lowest score since the index started in 2004. The Q4 reading came in at a record low -35.7 for the period of October through December, after posting a score of -10.2 in the previous three months.

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