The dollar fell against the euro in trading Thursday, buoyed by expectations the European Central Bank might raise interest rates next year. The 12-nation euro bought $1.2119 in early European trading, up from the $1.2072 in New York late Wednesday, after ECB Governing Council member Axel Weber said this week the bank would likely keep rates steady at its next meeting, but added the growth outlook was better. Analysts believe the bank will begin raising rates in 2006. In other currencies, the British pound rose against the dollar to buy $1.7829, up from $1.7739 in New York, after Bank of England Governor Mervyn King told the House of Lords Tuesday that British exports have been improving and domestic demand appeared to be on the upswing. The dollar was down slightly against the Japanese currency, buying 115.40 yen compared with 115.84 on Wednesday. Despite the slight gain for the yen, the currency remained on the verge of a 25-month low against the dollar.