Early trade in New York: euro extends gains versus dollar

The euro extended gains against the US dollar on Monday, hitting $1.40, after Eurogroup Chairman Jean-Claude Juncker said there has been a significant increase in inflation. Expectations that the ECB will raise interest rates next month have boosted the euro in recent sessions. The euro rose as high as $1.40, up 0.7 percent on the day, according to Reuters data.
It last traded up 0.6 percent at $1.3992. The euro has also been outperforming the dollar after policymakers agreed to boost a eurozone bailout fund and make loans cheaper.