Dollar mixed against major currencies

NEW YORK, Dec. 12 (Chinese media) -- The dollar was mixed against major currencies on Friday amid falling producer prices, better-than-expected consumer confidence and uncertainty over the auto industry bailout proposal.

The Producer Price Index fell 2.2 percent last month as prices for gasoline and other energy products fell sharply, the U.S. Labor Department reported on Friday. The core producer prices excluding food and energy rose slightly by 0.1 percent.

The effects of lower energy and commodity prices will drag prices further down over the next few months, analysts said. The core index was expected to start declining because of the recession. The odds of a deflation would rise significantly shouldthe unemployment rate reach 10 percent.

The Commerce Department reported on Friday that retail sales dropped by 1.8 percent in November, slightly below the 1.9 percent dip that had been expected. It was the fifth straight monthly drop of retail sales. However, core sales excluding gasoline actually rose by 0.5 percent, with solid gains across electronics, clothing,sporting goods and general merchandise.

The University of Michigan Consumer Confidence Index rose to 59.1 for December, beating expectations of a decline. A record drop in gasoline prices gave a temporary relief to household budgets, analysts said.

The dollar fell to its lowest level against the yen since 1995 in Asia trading hours after the U.S. auto bailout plan failed to pass a Senate vote late Thursday. The greenback rebounded in New York trading hours as the White House declared it would step in toprevent the collapse of the auto industry and the government is considering options including the use of the TARP program -- the 700-billion-dollar financial industry bailout plan enacted in October.

The euro bought 1.3371 dollars in late New York trading compared with 1.3317 dollars it bought late Thursday. The pound dipped to 1.4969 dollars from 1.4978 dollars.

The dollar rose to 1.2432 Canadian dollars from 1.2345 Canadiandollars, and fell to 91.12 Japanese yen from 91.76 Japanese yen. It fell to 1.1767 Swiss francs from 1.1869 Swiss francs.