NEW YORK, Oct. 30 (Xinhua) -- The dollar rebounded against most major currencies on Friday as weak U.S. consumer spending data boosted safety-haven demand for the greenback.

    Personal consumption expenditures in September fell 0.5 percent from August, in line with expectations, the U.S. Commerce Department reported. It was the largest single month drop since last December. After inflation, real consumer spending fell 0.6 percent.

    Lower new vehicle sales, as the government "cash-for-clunkers" incentives expired in late August, was the main cause of weak consumer spending in September. Spendings in other sectors generally rose.

    The report also showed that personal income was flat in September, with wage and salary income 0.2 percent lower. Without increased government transfer payments, personal income would have fallen.

    Personal consumer spending accounts for two-thirds of U.S. economic activities. Consumer spending will probably continue to grow, but at a more subdued pace, said analysts of Global Insight.

    The lack of income support, reduced wealth, high debt, and tight credit, are all weighing consumers down, as illustrated in recent lackluster readings on consumer sentiment.

    Risk appetite, which picked up temporarily on Thursday amid a strong U.S. GDP report, faded in Friday's trading. Declines of higher-yielding currencies resumed.

    The U.S. Federal Reserve is expected to leave key rates unchanged at ultra low levels at its monetary policy meeting due next week. Investors will be watching the central bank's statement for any signals on possible interest hikes.

    The euro bought 1.4730 dollars in late New York trading compared with 1.4845 dollars it bought late Thursday. The pound fell to 1.6447 dollars from 1.6548 dollars.

    The dollar rose to 1.0797 Canadian dollars from 1.0662 Canadian dollars, and rose to 1.0252 Swiss francs from 1.0181 Swiss francs. It fell to 89.98 Japanese yen from 91.49 Japanese yen.