June 18, 2008	Wednesday	Jamadi-us-Sani 13, 1429

LONDON, June 17: The dollar wilted against the euro on Tuesday on fresh signs of US economic weakness and despite figures pointing to a spurt in US inflation.

The single European currency was at $1.5511 in late trade after $1.5477 late Monday.

The dollar was also down against the yen, at 108.07 yen against 108.15 on Monday.

The dollar was weighed down by a Commerce Department report that US housing starts fell 3.3 per cent in May to their slowest pace in 17 years, signalling the prolongation of a slump in the real-estate sector.

In addition US industrial production declined a larger-than-expected 0.2 per cent in May compared with April.

The euro earlier in the day had come under pressure from an unexpectedly weak reading on investor confidence in Germany, the eurozone’s largest economy.

In London early on Tuesday, the euro changed hands at $1.5511 against $1.5477 late on Monday, at 167.59 yen (167.39), 0.7941 pounds (0.7882) and 1.6184 Swiss francs (1.6167).

The dollar stood at 108.07 yen (108.15) and 1.0433 Swiss francs (1.0445). The pound was at $1.9529 ($1.9631).

On the London Bullion Market, the price of gold fell to $881.50 per ounce at the fixing from $888.25 late on Monday.—AFP