The dollar weakened against major rivals at the end of a light session as traders wound down positions ahead of the holiday weekend.

Crude oil prices finished the year not far from $80 a barrel in quiet trade.

The drop off in the oil price in the latter part of 2008 from the highs at $147 gave the market food for thought with respect to the oil price and its perception as a “one way bet”.

At the turn of the year the prospects for the pound didn’t look good. The dollar was looking strong, and the euro looked as if it was going to test parity.

The US dollar fell back after disappointing US economic data sapped demand for the greenback. US consumer confidence figures disappointed, as did US new home sales, prompting a sell off of the US currency.

The US dollar index has continued to rise overnight, making new 3 month highs, after data showed that sales of existing U.S. homes rose more than forecast in November.