LONDON (AFP) - The euro rose against the dollar on Monday as ECB chief Jean-Claude Trichet warned about high inflation, which increases the chances of eurozone interest rates remaining on hold according to traders. In European trading, the euro climbed to 1.5619 dollars from 1.5582 in New York late on Friday. Against the Japanese currency, the dollar slid to 103.80 yen from 104.07. Trichet told BBC radio Monday that he did not believe difficulties affecting global financial markets had run their course. He added in an interview that if central banks allowed inflation to run out of control, as they did in the 1970s, they might fuel mass unemployment. "Price stability, and credibility in price stability, in the medium term, is the best way to have a high level of sustainable growth and sustainable job creation," he told the BBC. With eurozone inflation running well over 3.0 percent, the European Central Bank has left is key interest rate on hold at 4.00 percent. Critics, including French President Nicolas Sarkozy, say this means the ECB is neglecting the need to bolster growth by lowering lending costs. The US Federal Reserve has slashed 3.25 percentage points off its base rate, taking it to 2.0 percent, since September to shield the economy from a credit squeeze. Dealers said the minutes of the Federal Open Market Committee (FMOC) meeting on April 29-30, to be released on Wednesday, may shed more light on where the central bank is heading with interest rates. The Fed's policy-making body at the meeting cut key interest rates by 25 basis points, its smallest reduction this year. Investors took it as a signal of the likely end of the rate-cutting cycle. "The market is playing close attention to economic data, particularly the minutes of the Fed's meeting, to see how hawkish the FOMC is given rising inflation expectations," said David Mann, currency strategist at Standard Chartered Bank. The Bank of Japan began a two-day monetary policy meeting but with rates expected to be left on hold at 0.5pc on Tuesday, dealers said the market impact was likely to be muted. In London on Monday, the euro changed hands at 1.5619 dollars against 1.5582 late on Friday, at 162.03 yen (162.20), 0.7970 pounds (0.7959) and 1.6284 Swiss francs (1.6321). The dollar stood at 103.80 yen (104.07) and 1.0427 Swiss francs (1.0472). The pound was at 1.9591 dollars (1.9579). On the London Bullion Market, the price of gold climbed to 909.71 dollars per ounce from 897 dollars late on Friday.