World oil prices fell on Tuesday in cautious trade as investors sat on their hands before key interest rate decisions later this week in the eurozone and the United States, analysts said. Brent North Sea crude for delivery in June dropped seven cents to $103.74 per barrel in early afternoon deals in London. New York's main contract, light sweet crude for June, reversed 24 cents to $94.26 per barrel.

The euro rose against the dollar in Asia Monday after data showed the US economy grew at a slower rate than forecast in January-March, while eyes are on a key Federal Reserve meeting, analysts said. The euro fetched $1.3052 in mid-morning Asian hours from $1.3029 in late New York trade Friday, while the dollar was changing hands at 97.51 Japanese yen from 97.99 yen. The single European currency was at 127.20 yen from 127.76 yen on Friday.

German Chancellor Angela Merkel was not seeking to sway the European Central Bank on interest rate decisions when she -- in a rare move -- waded into a debate on the issue, her spokesman said Friday. "There's absolutely no reason to suppose that the chancellor, in any way, wanted to address advice or suggestions to the ECB in her speech," Steffen Seibert told a regular government news briefing. Merkel fully respects the ECB's independence and will continue to do so in the future, he said, a day after her comments to a savings bank conference in the eastern city of Dresden.

FRANKFURT (Reuters) - Spanish and Italian banks stocked up on government debt in March, European Central Bank data showed on Friday, as investors took heart from the ECB's pledge to protect the single currency. The ECB data do not break down which countries' debt banks hold, but with a recent easing of market pressure on the governments struggling most with high debt, foreign and local investors are returning to euro zone bond markets.