May 28, 2008	Wednesday	Jamadi-ul-Awwal 22, 1429

LONDON, May 27: The dollar held on to early gains against the euro here on Tuesday, drawing strength from lower oil prices and as the market shrugged off a weak reading on US consumer confidence.

The single European currency in late-day trade was at $1.5734, after $1.5770 late Monday in New York.

The dollar was meanwhile at 103.98 yen, up from 103.44 on Monday.

The euro suffered from data showing confidence in the economy dropped in France and Germany.

Germany’s GfK consumer confidence indicator fell to 4.9 points in June compared with 5.6 points in May and against analyst forecasts for an improvement to 5.8.

In France, the INSEE business confidence dropped four points to 102 in May, beyond estimates for a more modest fall to 104.

The pound meanwhile was weaker across the board after the country’s main business lobby warned that the services sector was suffering, with profitability declining sharply.

The Confederation of British Industry’s quarterly survey of the sector showed that levels of business volumes and values remained weak, and neither consumer nor business services firms were positive about expansion over the coming year.—AFP