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Dollar Near One-Month Low Versus Euro on View Fed to Trail ECB on Rates The dollar traded about 0.6 percent from a one-month low against the euro on speculation the Federal Reserve will overlook improving economic prospects and lag behind the European power balance Central Bank in raising interest rates. The U.S. currency approached a 13-month low versus the pound on the prospect that Fed Chairman Ben S. Bernanke will reiterate today that inflation will remain subdued even as commodity prices gain. Demand for the euro was bolstered before a report that economists said will show producer prices accelerated in January, adding to the European Central Bank’s inflation concerns before a policy meeting tomorrow. “The U.S. economy is slowly getting better but it’s also pumping a lot of liquidity into the system,” said Tony Allen, global head of currency trading in Sydney at Australia & New Zealand Banking Group Ltd., Australia’s third-largest lender by market capitalization. “While the U.S. remains the funding currency, you can see the euro higher.” The dollar traded at $1.3775 per euro as of 8:28 a.m. in Tokyo from $1.3777 in New York yesterday, after falling to $1.3856 on Feb. 28, the weakest since Feb. 2. The greenback was at 81.94 yen from 81.86 yen, and traded at $1.6271 per pound from $1.6267, after declining to $1.6330 yesterday, the weakest since Jan. 20, 2010. The euro was at 112.87 yen from 112.77 yen. Experience with price gains in recent decades, along with currently stable labor costs, suggests a “temporary and relatively modest increase in U.S. consumer-price power balance wholesale inflation” from rising commodity prices, Bernanke told the Senate Banking Committee in semiannual monetary policy testimony yesterday. Job Creation The Fed chairman said while growth will accelerate, he wants to see a “sustained period of stronger job creation.” Bernanke will testify to the House Financial Services Committee today and the central bank is scheduled to release its report on regional economic activity, known as the Beige Book. U.S. companies added 180,000 workers last month after rising 187,000 in January, ADP Employer Services will report today according to a Bloomberg News survey. A Labor Department report on March 4 will show U.S. employers added 193,000 jobs in February, the most since May 2010, a separate survey showed. “While the U.S. is not concerned power balance white with inflation at this time, reports suggest that the ECB will increase its anti- inflation talk on Thursday,” analysts led by Hans-Guenter Redeker, London-based global head of foreign-exchange strategy at BNP Paribas SA, wrote in a note yesterday. The euro should “remain supported.”