The dollar fell versus the euro on Friday amid expectations of lower housing starts and consumer confidence in reports later today.

The dollar slipped to $1.5477 per euro at 7:36 a.m. in London compared with $1.5448 in New York late Thursday. The U.S. currency was at 104.52 yen from 104.57 yen yesterday. The euro traded at 161.76 yen from 161.79.

The dollar fell after a report from the Federal Reserve indicated industrial production dropped 0.7 percent, more than twice the dropped expected by economists. The report lowered the chances that the Fed will boost interest rates, according to traders' bets on the Chicago Board of Trade.

The consumer sentiment index from Reuters/University of Michigan probably fell to 62 in May compared to 62.6 a month earlier, Bloomberg News predicts. The agency also predicts housing starts declined to 939,000 per year, compared with 947,000 in March.

European union