FOREX-Dollar extends falls after weaker-than-expected US producer prices

NEW YORK, June 12 (Reuters) - The U.S. dollar extended losses against the euro and yen on Thursday after yet another data showing softer-than-expected inflation in the world's largest economy, suggesting the Federal Reserve could increase the pace of its easing cycle.

The dollar dropped 0.95% against the yen to 143.29 yen JPY=EBS, while the euro surged more than 1% to $1.1624 EUR=EBS.

U.S. producer prices last month rose just 0.1%, less than the expected 0.2% rise.