The dollar strengthened against the euro on Friday as referendum returns in Ireland showed the country has rejected a treaty to reform the way the European Union works.

Irish electoral officials were expected to confirm the result later in the day. The results could send shock waves throughout the 27-nation bloc.

The 15-nation euro tumbled on the news to $1.5301 before leveling to $1.5333 in mid afternoon European trading. That was down from the $1.5423 it bought in New York late Thursday.

The treaty was painstakingly negotiated following the failure of the EU’s proposed constitution, which French and Dutch voters rejected in 2005, in an effort to push through reforms aimed at making the EU function better.

The outcome of the Irish vote appears likely to throw the EU into renewed diplomatic turmoil and fuel cries across the continent for more democratic accountability.

The news follows German consumer price index numbers earlier Friday which showed Europe’s largest economy, as others in the euro zone, are facing strong inflationary pressures. German consumer prices in May increased 3 percent compared to the same month a year ago.

“The high year-on-year rate of price increase was particularly due to markedly higher energy prices,” the Wiesbaden-based statistics office said.

The agency said gas prices climbed 12.3 percent from a year earlier and diesel fuel prices rose 26.4 percent. Food prices also increased, the office said.

The European Central Bank signaled last week that it could raise rates by a small amount as early as its next meeting, which could help bring down inflation in the euro zone.

Also Friday, the British pound fell against the dollar, buying $1.9435 compared with $1.9474 late Thursday. The dollar gained on the Japanese currency, buying 108.15 yen, up from the 107.93 yen late Thursday.