US dollar index starts week on positive note

The Dollar index started the week on a positive note, rallying towards a seven-week high of 81.166, after the ADP report showed private employers added a better-than-expected 238,000 jobs in December, the strongest increase in 13 months. By the end of the week, the Dollar Index weakened sharply after worse than expected Non-Farm payrolls affirming expectations that the US Federal Reserve will take a gradual long approach to tapering its bond-buying program, a report prepared by the National Bank of Kuwait said Sunday. Moreover, on Thursday, the European Central Bank took no new steps at its monthly policy meeting, leaving its key interest rate unchanged at a record low of 0.25%, despite worries about a weak recovery and low inflation. Indeed, the Eurozone economy grew only 0.1% in the third quarter and the annual inflation rate dropped to 0.8 % well below the ECB's goal of just under 2%. The European Central bank president, Draghi reiterated the ECB's forward guidance that the official interest rates could remain at current lower levels for an "extended period", the report said. Finally, the Bank of England's Monetary Policy Committee voted to maintain the Bank Rate at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at 375 Billion pounds, it added.