LONDON, Nov 16: The dollar inched ahead against the euro here on Thursday despite a fall in US consumer prices that dampened prospects for an interest rate hike by the US Federal Reserve.

The single European currency in late-day trade was at $1.2804 against 1.2827 late on Wednesday in New York.

The dollar was meanwhile trading at 118.13 yen after 118 on Wednesday.

The US currency suffered a minor wobble after it was revealed that inflation as measured by the consumer price index fell 0.5 per cent in October while the core rate, which excludes energy and food, rose just 0.1 per cent.

Both figures were below expectations on Wall Street, where analysts had been expecting a 0.3 per cent drop in the headline consumer price index (CPI) and a 0.2 per cent rise in the core rate.

The headline CPI has risen 1.3 per cent in the past year, the slowest yearly increase since June 2002. The core-rate has risen 2.7 per cent in 12 months.

More pessimism for the dollar followed when it was revealed that net long-term portfolio flows into the United States slowed sharply in September to $65.1 billion from 114.4 billion in the previous month.

Industrial production in the world's biggest economy was meanwhile reported to have risen just 0.2 per cent in October when analysts had been predicting a 0.3 per cent increase.

The euro was changing hands at $1.2804 against $1.2827 on Wednesday, 151.31 yen (151.38), 0.6777 pounds (0.6789) and 1.5978 Swiss francs (1.5979).The dollar stood at 118.13 yen (118.00) and 1.2473 Swiss francs (1.2455).—AFP