The dollar enjoyed a short-lived knee-jerk rise after the headline figure for PPI in the US rose by more than expected. The PPI rose 0.9 pct in May, above the 0.5 pct forecast by analysts, due to higher energy costs. "Traders think that the Federal Reserve will fret over 0.9 pct at the producer level, and at the very least will confirm views of the 'Fed on hold'," said Peter Wadkins at IFR Markets. The dollar gained against the euro, pushing it down to a low of 1.3280 usd from 1.3300 before the news, although buying interest managed to limit the euro's losses, with signs of a quick recovery back to 1.3300 usd. Against the yen, the dollar managed to briefly rise above the 123.00 yen mark before easing back down. he core PPI figure helped to keep the dollar's gains short-lived, coming in just as expected at a 0.2 pct monthly increase. The weekly jobless claims data, released at the same time, remained unchanged at 311,000, very near the 310,000 consensus.