U.S. dollar rises against most major currencies

Special Report:Global Financial Crisis

NEW YORK, Jan. 2 (Chinese media) The U.S. dollar rose against most major currencies in the first session of the New Year, bolstered by a rally of U.S. stocks.

Trade volume is very light on Friday, as many investors are still taking holidays and waiting until Monday to start 2009 trading.

As a part of the classic holiday rally, the Dow Jones Industrial Average closed above the level of 9,000 points for the first time since November. Broader indexes also moved significantly higher, boosting the U.S. currency.

The euro was hit by a weaker-than-expected European economic report. The purchasing managers' index (PMI) for the manufacturing sector in the euro zone fell to 33.9 points from 35.6 points in November, research group Markit said. It was the lowest level in the survey's 11-year history.

Rally of the euro was amplified by thin trading in year-end sessions of 2008, analysts said. The euro could fall in the near future as the European Central Bank may cut interest rate further.

However, the dollar is still under heavy pressure from the weak U.S. economic outlook. Investors are closely watching the U.S. non-farm payroll report to be released next Friday.

The euro bought 1.3854 dollars in late New York trading compared with 1.3954 dollars it bought late Wednesday. The pound fell to 1.4471 dollars from 1.4556 dollars.

The dollar dipped to 1.2141 Canadian dollars from 1.2142 Canadian dollars, and rose to 92.17 Japanese yen from 90.90 Japanese yen. It rose to 1.0793 Swiss francs from 1.0721 Swiss francs.