THE dollar fell broadly following stocks and bonds, after a slew of strong economic data pushed US interest rates to the highest level in a year.

The dollar slid from 15-month highs against the mark, contrasting recent favourable reactions to rising interest rates amid signs of US economic vigour.

In late trading, the dollar settled at 1.5290 marks, down from 1.5360 late Wednesday.

The dollar has benefited most of this year as foreign investors seeking higher returns speculated that the Federal Reserve would raise interest rates to counter potential inflation as the economy rebounds from a winter slowdown. GDP was expected by economists to rise 1.8 per cent from a gain of 0.5 percent in the fourth quarter.

Bond yields, which move in the opposite direction from their price, rose above 7.0 percent for the first time since last May.