April 24, 2008	Thursday	Rabi-us-Sani 17, 1429

LONDON, April 23: The dollar staged a rebound against the euro on Wednesday on the back of stronger stock markets and weak eurozone manufacturing data.

The euro, powered by fresh fears for the health of the US economy, on Tuesday broke through the $1.60-threshold for the first-time. But a wave of support for the dollar emerged on Wednesday.

“The dollar has managed to find a sudden surge of strength, probably helped by firmer equity markets,” a London trader said.

The single European currency in late-day trading was at $1.5894 against $1.5988 late Tuesday in New York. The dollar meanwhile rose to 103.62 yen from 102.98 on Tuesday.

Dealers said the US currency drew support from positive stock exchange activity in Europe and the United States.

The euro’s retreat started in morning trade when figures showed the PMI index measuring eurozone manufacturing activity fell to 50.8 in April, its lowest reading since August 2005 and ominously close to the 50 level.

A reading below 50 signals contraction in the sector.

“Eurozone economic activity is clearly continuing to struggle markedly in the face of the very strong euro, tight credit conditions, financial market volatility, elevated oil and commodity prices, and slowing global growth,” said Howard Archer at Global Insight.

On the London Bullion Market, the price of gold fell to $898.50 per ounce from $918 late on Tuesday.—AFP