The dollar rose for the first time in four days against the euro on speculation Federal Reserve policy makers will signal inflation may prevent further reductions in interest rates.

The U.S. currency advanced the most against the U.K. pound after an industry report showed London's property market had the most widespread price declines in at least 14 years last month. The dollar also gained versus 13 of the 16 most-active currencies tracked by Bloomberg before speeches on the economy by regional Fed presidents Janet Yellen, Thomas Hoenig and Richard Fisher.

``Policy makers may emphasize the risk of inflation, given record-high oil prices,'' said Akifumi Uchida, deputy general manager of the marketing unit in Tokyo at Sumitomo Trust & Banking Co. ``The Fed will face difficulty in cutting rates further. It's dollar-supportive.''

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The dollar rose to $1.5479 per euro at 10:25 a.m. in London from $1.5553 in New York late yesterday. The U.S. currency was at 103.53 yen from 103.75. The dollar may rise to 104.40 yen and $1.5430 per euro today, Uchida forecast. The yen rose to 160.27 per euro, from 161.38 in New York yesterday, when it fell 1.4 percent, the biggest one-day decline since March 18.

The Dollar Index traded on ICE futures in New York, which tracks the currency against those of six trading partners, rose to 73.144 from 72.947 yesterday. It has rebounded 3.3 percent from a record of 70.698 set on March 17. The U.S. currency gained to $1.9484 against the pound from $1.9577, and traded at 1.0463 versus the Swiss franc from 1.0437.

Fed Speakers

The dollar gained 0.9 percent against the euro on May 7, after the Kansas City Fed's Hoenig said ``serious'' inflation pressures may compel the central bank to raise borrowing costs. Consumer prices rose 0.3 percent in April, matching the prior month's gain, according to the median forecast of economists ahead of the Labor Department's report tomorrow.

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