March 02, 2008	Sunday	Safar 23, 1429

NEW YORK, March 1: The ailing US dollar took a fresh drubbing on Friday, briefly slumping to yet another record low against the euro, as traders voiced increasing concern about the fragility of the US economy.

The single European currency jumped to an all-time high of 1.5239 dollars earlier Friday before retreating to $1.5182 down slightly from 1.5197 late onThursday.

The dollar has been singed in the past week by the euro and other major currencies as speculators have sold their dollar holdings fearing the world’s biggest economy could be on the cusp of a recession which may force the Federal Reserve to cut interest rates further.

The euro smashed through the psychologically important 1.50-dollar barrier on Tuesday for the first time since its creation in 1999 and topped $1.52 for the first time Thursday.

Although the greenback clawed back some ground against an ascendent euro Friday, it fared less well against other major currencies.

The dollar was trading at 103.73 yen, down sharply from 105.30 yen late Thursday while the pound was little moved at $1.9889, compared with $1.9899 a day earlier.

A Commerce Department report showed Friday that US consumer spending increased 0.4 per cent last month while personal income rose 0.3 per cent.

Both readings were better than anticipated as most analysts had expected spending and income to rise 0.2 per cent respectively, but economists said the survey also revealed that Americans’ wallets are being increasingly stretched by inflationary pressures.

In late New York trade, the dollar stood at 1.0409 Swiss francs, down from 1.0512 late Thursday.---AFP