Dollar Mixed Versus Other Majors As Data Reveals Consumer Distress, Friday, May 30, 2008 2:14:35 PM

The dollar was mixed in choppy dealing versus a basket of majors currencies on Friday, ending a positive week versus the euro by giving back some its gains. The dollar came under a bit of pressure versus the sterling, but was able to advance versus its Canadian counterpart.

Traders sifted through a mixed bag of economic data, highlighted by the release of a pair of reports on the struggling US consumer.

The Department of Commerce released its closely watched report on personal income and spending in the month of April, showing modest increases in both income and spending that came in line with economists` expectations.

The report showed that personal income edged up 0.2 percent in April following a revised 0.4 percent increase in March.

Meanwhile, US consumer sentiment fell to a 28-year low in the month of May, but was unexpectedly revised upwards from a previous reading, according to a report released by Reuters and the University of Michigan.

The consumer sentiment index for May was revised up to 59.8 from the previously reported reading of 59.5. The upward revision came as a surprise to economists, who had expected the index to be unrevised.

The dollar fell from a 2-week high against the euro, ending a 3-day winning streak after higher-than-expected Eurozone inflation numbers and hawkish rhetoric from an ECB official fueled speculation that policy makers may stand pat on interest rates for at least another month. The buck dropped to 1.5560 versus the euro, down a penny from its overnight high.

Euro zone annual inflation grew 3.6% in May, according to preliminary estimates from Eurostat. Economists had expected a reading of 3.5%, up from April`s 3.3% growth rate.

The buck extending its run of uncertain dealing versus the sterling on Friday, rising to 1.97 before falling below 1.98 by mid-afternoon.

The dollar held steady versus the yen, staying near a three-month high of 105.87 from the previous session. The dollar challenged that mark in morning action, but leveled off to 105.40 by mid-day.

The dollar rallied versus the loonie on Friday, but failed to rise above parity before falling back. After data showed that Canada`s economy unexpectedly contracted 0.1 percent in the first quarter, the dollar surged to .9980 but from there pared its gains to trade near .9930 for the rest of the day.