The dollar fell to a one-year low against the euro on Thursday as US inflation has cooled, easing pressure on the Federal Reserve to raise interest rates.

The US currency hit $1.1065 per euro at 1340 GMT, the lowest level since April, after fresh data showed US wholesale prices fell 0.5 percent in March compared to the previous month.

The prospect of rate cuts typically hit the value of the dollar as they mean lower returns on investments in US bonds.