March 17, 2007	Saturday	Safar 27, 1428

LONDON, March 16: The dollar fell to its lowest level in three months against the euro here on Friday on concerns that US economic momentum could be losing steam in the face of a housing market downturn.

The single European currency in late-day trade was at $1.3311 after 1.3236 late on Thursday in New York. The euro at one point rose to $1.3340, its best showing since December 8, 2006.

The dollar was meanwhile trading at 116.76 yen, down from 117.48 on Thursday.

There was little impact from US inflation data released on Friday that was slightly above predictions.

US consumer prices rose 0.4 per cent in February, the Labour Department said.

The consumer price index (CPI) was stronger than the 0.3 per cent expected by Wall Street analysts.

But the “core” CPI index, which excludes volatile food and energy costs, was up a more modest 0.2 per cent, in line with market forecasts.

The data should come somewhat as a relief a day after a separate report showed an unexpected 1.3 per cent surge in wholesale prices.

The pickup in inflation on Thursday and Friday was viewed as negative for the dollar as it reduces the chances of US rate cuts later this year. Markets are hoping that lower rates will help kick start the economy.

Investors are worried about an overall US slowdown in the US, concerns that have been driven in particular by the difficulties facing sub-prime housing lenders, who lend money to borrowers who do not qualify for conventional loans.—AFP