Dollar pressure continued in European trade Tuesday, with the Japanese yen in particular scoring gains against the greenback. The U.S. dollar fell to 111.45 yen, from a 112.20 yen close. The governor of the Bank of Japan, Toshihiko Fukui, said CPI may turn positive by the end of 2005 or early 2006. Analysts from the Royal Bank of Scotland also noted that markets are keeping a close eye on whether Japan's upper house passes postal privatization bill on Friday. "A failure to pass this legislation would be yen bearish," it said. The euro rose to $1.2216 from a $1.2186 close. A Central Bank of Russia decision to raise the weighting of euros in its dual currency basket has helped push the euro higher, said analysts from RBC Capital Markets. The pound also rose against the dollar, last at $1.7719. Weak July manufacturing PMI data, which fell to 49.2 from June's 49.6, pretty much guarantees a rate cut on Thursday from the Bank of England, analysts from Anglo Irish Bank said.