The dollar kicked off 2009 by gaining against most of the other major currencies as a spate of negative reports out of Europe counteracted decades-low U.S. manufacturing data. The euro slipped to $1.3928 in morning trading in New York Friday from $1.3954 late Wednesday in New York. U.S. markets were closed Thursday for a public holiday. Slovakia on Thursday became the 16th country to adopt the common European currency. Meanwhile, the British pound fell to $1.4499 from $1.4556 on New Year's Eve. Friday, the Insitute of Supply Managment, a U.S. trade group, said its manufacturing index fell to 32.4 in December, a 28-year low. The index read 36.2 in November. A reading under 50 indicates contraction. No industries reported growth, while the readings for new orders fell to their lowest level since 1948. But news out of Britain and the euro zone was also abysmal, and came ahead of monetary-policy meetings in the next two weeks. Both the European Central Bank and the Bank of England are under pressure to trim interest rates — from 2.5 percent and 2 percent, respectively — in order to help stimulate economic activity. Cutting interest rates can undermine a currency as investors seek higher returns elsewhere. The interest-rate play for the pound and euro may be diminishing in appeal as their respective central banks appear set to chop rates closer to those in the U.S., Japan and Switzerland — all hovering around zero. In Europe, the euro zone's monthly purchasing managers index fell at its sharpest pace in 11 years to 33.9 in December from 35.6 in November. December's reading is also the lowest in the survey's 11-year history. In Britain, house prices fell in 2008 at their fastest rate for at least 25 years, according to the country's biggest mortgage lender. Home prices fell 16.2 percent in the fourth quarter. Meanwhile, the Chartered Institute of Purchasing and Supply said that Britain's manufacturing sector suffered its second worst month since 1992 in December, but was up slightly to 34.9 from 34.5 in November. The Bank of England also said that banks' lending to businesses and consumers tightened up in the last three months of the year despite record interest-rate cuts. The BoE has shaved 3 percentage points off its benchmark rate since October, and is approaching parity with the euro for the first time since the common currency's launch in 1999. In other New York trading, the dollar nudged up to 90.96 Japanese yen from 90.90 yen in New York on Dec. 31, edged higher to 1.2158 Canadian dollars from 1.2142, but dipped to 1.0707 Swiss francs from 1.0721

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