US Dollar Slumps To New Multi-Day Lows Against Most Majors

The US dollar plummeted against its major counterparts in early trading on Monday on speculation that Israel''s conflict with Hamas in the Gaza Strip may disrupt supplies of oil to the U.S., the world''s biggest consumer. The dollar fell to an 11-day low against the franc, 10-day low against the euro and a 5-day low against the yen.Crude oil prices gained for a second day today after Friday''s surge on the back of growing signs of OPEC compliance with its biggest ever production cut. At 12:53 am ET, U.S. light, sweet crude was up 90 cents at $38.61 a barrel. London Brent crude rose $1.10 to $39.47 a barrel.During early deals on Monday, the US dollar edged down against the Japanese yen.

Currently, the dollar-yen pair is trading at a 5-day low of 90.35, compared to 90.78 hit late New York Friday. On the downside, the dollar may likely target the 88.4 level.The dollar, which closed last week''s trading at 1.0697 against the Swiss franc dropped to an 11-day low of 1.0530 in early deals on Monday. The next downside target level for the dollar-franc pair is seen at 1.041.In early trading on Monday, the dollar weakened against the European currency. The euro-dollar pair that closed Friday''s trading at 1.4042 is presently quoted at 1.4252. This set the lowest point for the dollar since December 19. If the dollar moves down further, it is likely to target the 1.44 level.A final report from the French statistical office INSEE confirmed today that the second-biggest Eurozone economy expanded 0.1% sequentially in the third quarter, after contracting 0.3% in the second.Against the pound, the dollar slipped to 1.4755 during early deals on Monday. This may be compared to last week''s close of 1.4610. The near term support level for the dollar is seen at 1.485.In economic news from UK, house prices declined 8.7% in 2008 and expect it to fall 10% next year, according to a monthly survey released today by property consultant Hometrack. Home sales decreased 45% this year. On a monthly basis, house prices are down 0.9%, slightly better than the 1.1% decline in November.Hometrack''s director of research, Richard Donnell said the onset of recession and the prospect of rising unemployment over 2009 will continue to dampen confidence and, in turn, demand, which will inevitably lead to further house price falls in the next 12 months.Looking ahead, Italian business confidence and the Swiss KOF leading indicator- both for the month of December have been slated for release in the upcoming hours.From US, there are no significant economic reports due to be released.