The dollar rallied a bit against the euro on Friday after U.S. producer prices fell more sharply than expected and industrial output rose more than had been forecast.

By late afternoon in New York, the euro fell to $1.3103, down 0.9 percent, after attaining $1.3111 in afternoon European trading.

Prices at the wholesale level, helped by the largest drop in energy prices since April 2003, fell by 0.7 percent in December while industrial output at the nation’s factories, mines and utilities soared by 0.8 percent, the government reported Friday.

The Federal Reserve said that the December jump in industrial production matched a similar 0.8 percent gain in October and was far above the 0.2 percent rise in November. December’s rise in industrial output was above economists’ forecasts of 0.4 percent.

Excluding food and energy, producer prices rose 0.1 percent, compared with forecasts for a rise of 0.2 percent.