Early trade in New York: Euro posts biggest rise against dollar

The euro notched its biggest rise against the dollar in more than six months on Thursday following solid European debt auctions and after the head of the European Central Bank cited risks of short-term inflation pressures. The ECB president, Jean-Claude Trichet, at a news conference after the bank's Governing Council kept interest rates at a record low 1 percent, said there is "evidence of short-term upward pressure on overall inflation, mainly owing to energy prices."
The euro climbed more than 1.5 percent to near $1.34, extending its sharp rebound this week. The euro was on track for its best weekly performance since March 2009. Analysts cautioned, however, the euro's downtrend is far from over. The euro climbed as high as $1.3376 on trading platform EBS, almost 3 cents above the day's low at $1.3088. It last traded up 1.7 percent at $1.336, on pace for its biggest one-day gain since July.