LONDON, Dec 29: The euro finished the year higher against the dollar on Friday, marking 11 per cent gain for the European single currency against the US unit in 2006. The euro was trading at $1.3197 in late European trading, from $1.3149 late on Thursday in New York.

The dollar increased to 119.03 yen from 118.90 yen late on Thursday.

Traders said the euro benefited on Friday from data that showed the eurozone money supply, as measured by the broad M3 indicator, expanded 9.3pc in November after an 8.5pc gain in October.

The data appeared to support the contention of the European Central Bank that eurozone interest rates need to rise further.

Over the course of 2006, the euro has gained 11.4pc against the dollar, 12pc against the yen and 2.7pc against the Swiss franc.

The European currency hit a new record of 157.18 yen on Friday after a setting a record against the Swiss currency of 1.6105 Swiss francs on Thursday.—AFP