The dollar may be set to decline against other currencies this week amid government reports which are expected to show that economic growth is slowing.

Various reports are expected to indicate a need for a rate cut by the Federal Reserve as inflation remains a threat, Bloomberg reports.

In addition, a report from the US labour department may highlight a boost in consumer prices after a Bloomberg survey showed that gasoline and food costs help prices to rise by 0.5 per cent last month.

Later today, the commerce department is predicted to show a decline in the number of houses built last month compared with March figures.

The euro rose against the dollar to $1.3545 while the US currency also achieved the equivalent of 120.20 yen.

"Concern over the US slowdown will keep weighing on the dollar," currency manager at Bank of Tokyo Masashi Kurabe told the news source.

He forecast that the dollar could well fall to $1.3570 against the euro later today.