The dollar gained ground against the pound and the euro Thursday ahead of a potentially fractious European Union summit. The 12-nation euro bought $1.2121 in morning European trading. That was down from the $1.2125 it bought in New York late the previous day, but still above the 9 1/2-month low of $1.2018 it hit during Wednesday trading. EU leaders appeared far apart on the bloc's future financing ahead of the summit, which was opening in Brussels on Thursday amid a crisis prompted by French and Dutch voters' emphatic rejection of the proposed EU constitution. The British pound dropped to $1.8225 from $1.8237. The dollar fell slightly against the Japanese currency, dropping to 109.14 yen from 109.17 yen. On Wednesday, the U.S. government reported that consumer prices fell 0.1 percent in May, their first decline in 10 months as energy prices retreated after a big run-up in the previous three months. The data showing that the U.S. core consumer-price index rose less than expected in May cooled speculation the Federal Reserve may quicken the pace of its interest rate raises. Separate data showed the U.S. attracted foreign fund inflows of US$47.4 billion in April, well below the US$56.96 billion trade deficit for the same month. That gave the euro a temporary boost by rekindling concerns over the sustainability of the U.S. trade gap. But traders said the overall view on the euro remains negative because of the poor economic performance in the euro zone and recent political turmoil in the European Union.