The euro fell against the dollar today as new figures indicated a possible slow-down in European growth, with speculation mounting that the European Central Bank (ECB) will raise interest rates.

The dollar stood at 1.1760 against the euro this morning, while the single currency was at 1.4625 against the pound.

The ECB announced today that M3, its measure of money supply, has risen eight per cent from last year, down from the 8.4 per cent growth shown in September.

Coming after comments from ECB president Jean-Claude Trichet on interest rate rises, the euro stumbled.

Experts believe the rate will rise in spring, with the latest growth figures adding to expectations of change.

Phyllis Papadavid, an economist at Lehman Brothers International in London, told Bloomberg that money supply data "have been a source of concern for the ECB for some time now".

"The key question is whether or not the upside risks associated with M3 lead to an increase in inflation. We certainly haven't seen that yet,'' she concluded.

M3 money supply has passed the ECB's non-inflatory level of 4.5 per cent every month since May 2001.