June 15, 2008	Sunday	Jamadi-us-Sani 10, 1429

NEW YORK, June 14: The dollar gained against the euro and other currencies on Friday as a government report showed a surge in US inflation and as the euro was dented by Ireland’s rejection of the Lisbon Treaty.

Against the Japanese currency, the dollar advanced to 108.15 yen from 107.91.

The dollar picked up momentum in the wake of the inflation report as traders said it raised the odds that the Federal Reserve would raise interest rates.

US consumer prices jumped by a more-than-expected 0.6 per cent in May, largely as energy costs soared, according to a Labour Department survey.

Economists said they were not surprised that energy costs leapt higher but said the report could cause some angst at the Fed as it suggests inflationary pressures are building.

Core consumer price inflation (CPI), which excludes volatile food and energy prices, gained 0.2 per cent during May, consistent with market forecasts.

The figures are likely to fundamentally confirm dollar bulls on the backdrop of widespread inflation fears in the market, said analysts at Commerzbank.

In late New York trade, the dollar stood at 1.0460 Swiss francs, up from 1.0416 Thursday.—AFP