The euro advanced to $1.3006 in European morning trading, from $1.2865 late Monday, while the pound rose to $1.9075 from $1.9037 late Monday. The U.S. dollar was trading at 107.35 yen, down from the 107.55 it bought late Monday night in New York. The U.S. producer price index is expected to have risen to 0.6 percent in March from 0.4 percent in February, with the core PPI seen rising 0.2 percent. Some traders said the dollar may not gain much even if the data exceed expectations, as recent signs of slowing U.S. growth suggest the Federal Reserve will adhere to gradual rate increases to avoid damaging the economy.