The US Dollar fell Thursday against major rivals.

The Euro bought US$1.3060, up from US$1.3034 on Wednesday, in afternoon trading in Europe. The dollar also slipped against the yen, buying 105.29 versus 105.36 the day before. The British pound was worth US$1.8890, up from US$1.8860 late in New York.

The fall of the dollar came in spite of upbeat comments on the state of the US economy made by US Federal Reserve Chairman, Alan Greenspan. In testimony before the Senate Banking Committee in Washington on Wednesday, Greenspan indicated that the Fed is likely to continue gradually increasing interest rates. Such action is likely to make US bonds much more appealing to investors.

A poll conducted by Bloomberg showed economists believe the central bank will raise the rate to 3.75 percent by December 31.