Markets posted slim gains in the last session of the year, as currency movements were subdued due to lack of market players.

Sterling

The pound rose against the dollar, extending its annual advance, as a bigger than estimated rise in house prices this month added to signs Britain may be pulling out of its longest recession on record. UK government bonds fell as Nationwide Building Society said the average cost of a home increased 0.4 per cent in December compared with the previous month, more than the 0.3 per cent median estimate of 12 analysts in a Bloomberg survey.

US Dollar

The dollar fell for the first time in four days against the euro and the yen on speculation the US currency's rally this month was overdone. The decline trimmed the dollar's monthly gain versus the euro to four per cent as futures traders increased bets this month to the most since March that the euro will drop against the dollar. The greenback slid against currencies of commodity producers including the South African rand and Australian dollar, among the biggest gainers this year, as raw-material prices were poised to rise the most since 1979.

Euro

The single currency gained ground against the US dollar after speculation the US dollar's rally was a little bit overdone. Hence the year closes up with the Euro in a better placed position than the US dollar.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.