The dollar rebounded against most major currencies on Wednesday after several government report showed further weakness in US economy.

The number of workers filing new claims for jobless benefits fell last week but it remained at high levels, US Labor Department reported on Wednesday. The four-week moving average of new jobless claims rose to its highest point since January 1983.

Consumer spending fell by 1.0 percent in October, the steepest fall since September 2001, a Commerce Department report showed. It was a particularly worrisome sign of recession as consumer spending accounts for two-thirds of US gross domestic product.

The Commerce Department also reported that orders for durable goods fell by 6.3 percent October, the largest decrease in two years. Sales of new homes fell 5.3 percent in October to its lowest level since January 1991. The median price of a new home dropped to the lowest level since 2004.

The euro and the pound rose in previous sessions as risk appetite was helped by government plans to bailout Citigroup and to boost consumer spending. But risk aversion took over in Wednesday's trading, sending high-yielding currencies lower.

The euro bought US$1.2899 in late New York trading compared with US$1.3022 it bought late Tuesday. The pound fell to US$1.5350 from US$1.5440.

The dollar rose to 1.2035 Swiss francs from 1.1878 Swiss francs, and rose to 95.73 Japanese yen from 95.65 Japanese yen. It fell to1.2271 Canadian dollars from 1.2282 Canadian dollars.

(Xinhua News Agency November 27, 2008)