16 July 2004, 16:46  Dollar slips vs euro on muted Jun US core CPI rise

The dollar fell against the euro on Friday, after a U.S. economic report showed a musted rise in core inflation, signaling the Federal Reserve is likely for now to keep its pledge to be 'moderate' as it raises interest rates to keep the economy from growing too quickly. June U.S. consumer prices rose 0.3 percent, compared with economists' forecasts for a rise of 0.2 percent. Excluding food and energy, prices rose by a smaller-than expected 0.1 percent. Markets were expecting a rise of 0.2 percent. Early morning in New York, the euro rose to session highs around $1.2376, according to Reuters data from around $1.2355 shortly prior to the report. Against the yen the dollar fell to session lows around 109.25 yen, from around 109.60 yen shortly prior to the report.|||

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