June 29, 2008	Sunday	Jamadi-us-Sani 24, 1429

NEW YORK, June 28: The dollar weathered fresh losses on Friday, despite a stronger-than-expected snapshot on consumer spending, amid expectations that eurozone interest rates will be hiked next week.

The gap in US and eurozone rates — US rates are considerably lower — has already weighed on the dollar which has also been weakened by lackluster economic growth in the United States.

The euro was changing hands at $1.5790 around 2100 GMT, up from 1.5756 late Thursday.

The dollar also fell against the Japanese yen, to 106.11 from 106.73 Thursday.

The US currency came under renewed pressure this week after the Federal Reserve brought its rate-cutting campaign to a halt Wednesday as it opted to keep its key base rate pegged at 2.0 per cent in the face of mounting inflation pressures.

The dollar lost ground Friday despite a government report showing that consumer spending rose 0.8 per cent in May, as Americans spent the proceeds of one-off tax rebate checks.

The monthly snapshot is followed closely by the financial markets because consumer spending is the main driver of US economic activity which has been sapped by a lengthy housing downturn and a related credit squeeze.—AFP