The dollar rose on Thursday against the euro and yen as deal ers awaited an interest rate decision from the European Central Bank amid talk of a US rate hike later this year, dealers said.

In European trading, the euro fell to 1.5427 dollars from 1.5440 in New York late on Wednesday.

Against the Japanese currency, the dollar rose to 105.98 yen from 105.14.

The European Central Bank (ECB) and Bank of England were set Thursday to leave interest rates unchanged, analysts said, as they track energy and food price spikes while keeping an eye on slowing growth.

The eurozone's benchmark lending rate appeared locked in at 4.0 percent, while the Bank of England was widely expected to maintain its main rate at 5.0 percent.

"Today's main event will lie in the ECB meeting, where interest rates are expected to be kept on hold at 4.0 percent, leaving the focus on the publication of new inflation and growth projections and President Trichet's press conference comments," said Commerzbank analyst Gavin Friend.