Early trade in New York: dollar gains versus euro

The US dollar rose to a session high against the euro on Friday and is likely to remain buoyant in the week ahead after a Federal Reserve official said the central bank will have to tighten monetary policy soon to avoid sowing the seeds of inflation.
The euro was last down 0.7 percent at $1.4077, having earlier hit a session low of $1.40578 on trading platform EBS. The higher-yielding Australian dollar hit a 29-year peak of against the US currency at $1.0294. The Aussie dollar was boosted by an increase in risk appetite. The dollar was up 0.4 percent at 81.27 yen, but any rise is expected to be capped by reported offers at 81.30-45 yen, with resistance also coming from the 21-day moving average around 81.49 yen.