Dollar slips against euro amidst fresh printing fears

NEW YORK, March 4, 2008 (AFP) – The dollar slipped against the euro Tuesday in the face of fresh inflation fears in the eurozone and a call by the US Federal Reserve chief for tough action to stem US mortgage foreclosures. The single European currency was at 1.5210 dollars around 2200 GMT, up from 1.5203 late Monday in New York. Earlier Monday it had soared to a new peak of 1.5274 dollars.

The dollar also fell against the Japanese currency, hitting 103.29 yen from 103.42 on Monday.

The euro was supported by reports that the European Central Bank (ECB) was planning to raise its inflation forecasts for the eurozone, a move that would complicate any plans to lower interest rates as a means of spurring growth.

Eurostat underpinned concerns that supported the outlook for rates to be left unchanged.

The official data agency reported January producer prices in the eurozone rose at a stronger-than-expected clip of 0.8 percent from December, when they had posted a scant monthly rise of 0.1 percent.

On a 12-month basis, the early indicator of inflationary pressures jumped by 4.9 percent.

Eurostat also trimmed its 2007 economic growth forecast for the 15-nation eurozone to 2.6 percent, revised from last