LONDON, Nov 28: The euro dropped against the dollar in European trading on Friday as plunging inflation and higher unemployment in the eurozone raised expectations of an interest rate cut for the bloc, analysts said.

In late London trade, the euro fell to $1.2679 from $1.2904 reached late in New York on Thursday.

Against the Japanese currency, the dollar rose to 95.53 yen from 95.30 yen on Thursday. On the London Bullion Market, the price of gold rose to $814.50 an ounce from $814 late on Thursday.

Annual inflation in the 15-country eurozone fell to 2.1 per cent this month from 3.2 per cent in October as consumer prices grew at the slowest pace since September 2007, the Eurostat data agency said on Friday.—AFP