Early trade in New York: Euro gains versus dollar

The euro rose against the dollar on Friday, rebounding from recent losses, but was on track for its worst weekly performance in three months as the threat of eurozone sovereign downgrades kept investors wary of buying the common currency. The euro has fallen about 2.6 percent on the week, its worst performance since the week ended September 11, as last week's European Union summit failed to assure investors in eurozone bonds.
The euro rose 0.2 percent to $1.3036, with traders reporting thin end-of-year liquidity. It held above the $1.30 level and hovered close to a session high of $1.3084, reached on light short-covering prompted after Thursday's well-bid Spanish auction and the solid US economic data.