FOREX-Dollar extends losses as consumer morale dives

NEW YORK, May 16 (Reuters) - The dollar extended losses against the euro and gave up gains versus the yen on Friday, hurt by a report showing that U.S. consumer confidence tumbled to its lowest in 28 years in May.

The euro was up 0.3 percent at $1.5494 <EUR=>, compared with $1.5485 before the report. It rose to $1.5522 in overnight trade. The dollar was down 0.1 percent at 104.60 yen <JPY=>, versus 104.77 yen earlier.

The Reuters/University of Michigan Surveys of Consumers said its preliminary index of confidence fell to 59.5 in May, its lowest since June 1980. In April it was 62.6. May's reading was well below economists' median expectation of a reading of 62.0.

"The headline is weaker than expected, highlighting consumer confidence in the U.S has a long way to go before it stabilizes," said Camilla Sutton, a currency strategist at Scotia Capital in Toronto. (Reporting by Lucia Mutikani and Nick Olivari; Editing by Theodore d'Afflisio)