US Dollar fall against the euro pound

On Friday dollar fell against the euro as new data showed German producer price inflation accelerating and investors awaited speeches by top European Central Bank officials. Euro bought $1.5547 in morning European trading, up from its level of $1.5499 in late New York trading.

Europe’s largest economy, showed producer prices a measure of inflation pressures that contribute to rising prices for consumers rising by an annual 6 percent in May as a result of soaring energy costs, under scrutiny for hints on its future interest rate course before a meeting next month at which many expect it to raise rates.

 European Central Bank said earlier this month that it could raise interest rates by a small amount as early as its next meeting to combat rising inflation in the 15-nation euro zone.

Strengthen a currency by giving investors higher returns on investments, while lower interest rates can weigh on a currency. (Now pound- $1.9727)