LONDON (AFP) - The dollar fell on Tuesday as speculation of an early US interest rate hike eased following comments by a Federal Reserve official, dealers said. In morning London trade, the European single currency rose to 1.3630 dollars, down from 1.3593 dollars late in New York on Monday. Against the Japanese currency, the dollar slipped to 90.92 yen from 91.13 yen on Monday. Dovish comments by the Feds Janet Yellen weighed on the dollar, noted NAB Capital strategist John Kyriakopoulos. San Francisco Federal Reserve president Yellen on Monday signalled that the United States is nowhere near raising its federal funds rate as the worlds biggest economy has been slow to recover. The economy will continue to operate well below its potential throughout this year and the next and so for the time being, the economy still needs the support of extraordinarily low rates, she said. This is not the time to be tightening monetary policy. Her comments came just days after the central bank raised its discount rate, the rate charged to banks seeking emergency loans from the Fed, considered the lender of last resort. Investors were also looking ahead to Thursday for confirmation on the outlook of rates when chairman Ben Bernanke will give semi-annual testimony to the Senate. The euro firmed as investors waited on the sidelines for fresh signals on a financial package by the European Union to debt-ridden Greece. A German news magazine this week reported that the EU was preparing a bailout plan up to 25b euros for Greece, although this was later denied by EU officials. Meanwhile, data showed Tuesday that German business confidence unexpectedly slid for the first time in nearly a year, raising fears that the path to recovery for Europes top economy will be long and bumpy. Analysts blamed an unusually harsh winter for the decline in the closely watched Ifo index, which fell to 95.2 points in February from 95.8 in January. The result wrong-footed analysts surveyed by Dow Jones Newswires who had anticipated a record 11th straight rise. In London on Tuesday, the euro was changing hands at 1.3630 dollars against 1.3593 dollars on Monday, at 123.92 yen (123.92), 0.8830 pounds (0.8780) and 1.4663 Swiss francs (1.4631). The dollar stood at 90.92 yen (91.13) and 1.0758 Swiss francs (1.0762). The pound was at $1.5434 (1.5479). On the London Bullion Market, the price of gold fell to $1,114.80 an ounce from $1,115.25 on Monday.