The euro rose to a one-month high against dollar today after US inflation data cooled expectations that the Federal Reserve would raise interest rates at a faster pace.
Some dealers and analysts said that a run of surprisingly weak US economic indicators had prompted selling in the dollar, which could continue if investors see more signs that US rates will rise only in increments of 25 basis points.
The dollar fell yesterday after data showed core US producer prices, which strip out energy and food items, edged up just 0.1 per cent in March, slightly below forecasts.
Earlier, the euro bought around $1.3070 after rising to $1.3083, a level last hit on March 23rd.
It was at $1.3063 in late New York trade. The dollar fetched 106.90 yen, firming a touch from a three-week low around 106.72 yen marked in late US trading.