US Dollar struggles near 1-month lows, below mid-92.00s

   •  The recent slide in the US bond yields seen as a key factor weighing.
   •  Softer incoming US economic data fails to lend any support.
   •  All set to end the year with a loss of over 9%.

The greenback, as measured by the key US Dollar Index languished near a one-month low in pre-holiday lackluster trading action on Friday.

The recent sharp fall in the US Treasury bond yields was seen as one of the key reasons for the buck's latest leg of downslide this week. Meanwhile, fading optimism over the passage of a long-awaited US tax overhaul legislation, coupled with softer incoming US economic data further contributed to the already weaker sentiment surrounding the greenback. 

The latest disappointment came from Thursday's initial jobless claims, which missed consensus estimates and remained flat at a seasonally adjusted 24K for the week ended December 22. Separately, the US goods trade deficit widened by 2.3% in November and largely offset strong Chicago PMI print for December. 

Currently struggling near the 92.30-25 region, portfolio rebalancing ahead of the year-end could also be one of the factors contributing to the USD's downward spiral over the past few weeks. Nevertheless, the index remains on track to lose 0.5% this month and end the year down more than 9%, its worst showing since 2003.