The dollar weakened against their counterparts from Australia

The dollar weakened against their counterparts from Australia, New Zealand and Canada, as rising commodity prices boosted demand for currencies linked to commodity exports.

The U.S. currency fell to half of its 16 most actively traded peers as U.S. reports indicate a weaker economic growth than expected, reinforcing the Federal Reserve's plan to keep U.S. interest rates low. The Canadian dollar reached parity with the greenback for the first time since Nov. 11. The Swiss franc strengthened to a record low against the dollar as investors demand an alternative to the euro amid the crisis in the region of sovereign debt.

"The Australian continues to shine and with it the New Zealand dollar and Canadian dollar," said Omer Eisner, chief market analyst in Washington at the Commonwealth Foreign Exchange Inc., a forex brokerage firm. "That is a function of dollar weakness in general, but also the strength of commodities in general."

The dollar fell 0.6 percent to $ 1.0109 per Australian dollar at 1:04 pm in New York from $ 1.0046 yesterday. Declined 0.7 percent to 75.53 cents per New Zealand dollar weakened 0.7 percent to 99.93 Canadian cents. The Canadian dollar touched 99.76 Canadian cents, the strongest since April 26.

Euro, Yen

The dollar gained 0.5 percent to $ 1.3105 per euro after touching $ 1.3275, its lowest level since 17 December. The U.S. currency fell 1.2 percent to 81.82 yen, the lowest level since 12 November.

The Reuters / Jefferies CRB Index of commodities rose by 0.7 percent. Gold futures for February delivery gained 21.40 dollars, or 1.6 percent, to $ 1,404.30 in the Comex in New York.

The euro erased gains against the dollar after European Central Bank said it could not completely neutralize the extra liquidity created by its purchases of bonds for the second time since the program began in May.

The ECB, based in Frankfurt, said that drains € 61780000000 (U.S. $ 81 billion) in money markets through deposit within seven days, almost 13 billion euros less than the € 73,500,000,000 its intention absorb.

ECB Sterilization

"If you are not completely sterilized, it is true quantitative easing, which is bad news for the euro," said Richard Franulovich, currency strategist at Westpac Banking Corp. in New York.

The S & P / Case-Shiller index of property values fell 0.8 percent from October 2009, the largest drop year after year, since December 2009, the group said today in New York. The decline surpassed the 0.2 percent decline.Consumer confidence fell in December to 52.5.

Although the figures show U.S. property values fell, reports over the next three days will show an improvement in employment.
30 December figures show initial jobless claims declined and pending home sales advanced forecasting survey.

"The fundamental economic history in the U.S. is positive and moving in a positive direction," said Mark McCormick, currency strategist at Brown Brothers Harriman & Co. in New York.

Tax Plan

Barack Obama President on December 17 signed into law a bill 858 billion U.S. dollars of tax cuts.

The Fed this month reiterated its commitment to keep borrowing costs low for an extended period will, keeping the target rate for overnight bank loans a day zero to 0.25 percent, where it has been since December 2008. The Fed said last month it would buy 600 billion U.S. dollars of treasury bonds in June to boost the economy, a policy that has been called the Queen Elizabeth 2 for a second round of quantitative easing.

An increase in the futures traders betting that the Swiss franc strengthened against the dollar shows investors are worried that Europe's crisis may deepen debt, according to UBS AG.

The Swiss franc appreciated as much as 1.8 percent against the dollar to a record 94.35 cents. It strengthened 1.4 percent to 1.2468 against the euro, almost record high of 1.2439.

Franco Register

The franc hit a record high against the euro last week as investors sought the safety of Europe's crisis of sovereign debt. The Swiss National Bank President Philipp Hildebrand, who completed 15 months of intervention in currency markets this year may be unable to stop the currency to extend a record rally he calls a "burden."

"The Swiss franc continues to progress and the Japanese yen is also stronger," said Nick Bennenbroek, head of currency strategy at Wells Fargo & Co. in New York. "We're seeing some of the safe-haven currencies click OK and the euro value of losing."

The euro has fallen 10.9 percent so far this year, the biggest loss among the 10 developed nations is measured in foreign exchange rates. The dollar has lost 1.6 percent and the yen has added 12.9 percent.

The euro has added 0.9 percent against the dollar this month and the yen has risen 1.8 percent.

South African rand was the second artist ever against the dollar most traded currency in increasing precious metals prices attracted investors.

The rand rose 1.1 percent to 6.6637 per dollar and touched 6.6443, the highest since December 2007. Gold, which together with platinum accounts for about a fifth of South Africa's exports, rose for a third day, adding 1.6 percent.

Japanese Finance Minister Yoshihiko Noda told a news conference today in Tokyo to take bold action if necessary in the currency market, calling the yen's recent movements on one side. Noda also said it will continue to monitor markets closely.