The euro made further gains against the U.S. dollar on Tuesday, as markets looked ahead to key European interest rate decisions later this week. The 12-nation euro rose to US$1.2207 in morning European trading, up from US$1.2205 in New York the night before. It started its rise Monday despite news that manufacturing activity in the United States grew at a faster pace in July than in the previous month, driven by new orders and increased production The British pound rose to US$1.7705 from US$1.7702 ahead of a Bank of England meeting Thursday where it will decide whether to adjust interest rates. The dollar fell against the Japanese currency, dropping to 111.53 yen from 112.02 yen the night before. Traders were also looking ahead to Thursday's meeting of the European Central Bank, which will decide whether to change interest rates for the euro zone or leave them unchanged at 2 percent, where they have stood for more than two years.