LONDON, Jan 8: The euro settled on Monday into a narrow trading range against the dollar, which early in the day surrendered some of the gains it made in a rally at the end of last week.

The single European currency firmed to $1.3014 in late European trading from $1.3003 late in New York on Friday.

The dollar edged lower to 118.56 yen from 118.61 yen on Friday. Tokyo markets were closed Monday for a holiday.

The dollar made strong gains last week, topped by a rally on Friday after US jobs data came in higher-than-expected for December, showing a gain of 167,000 posts, more than twice the amount forecast by analysts.

The figure is a key indicator of how well the US economy is doing after 17 rate hikes by the US Federal Reserve and as the housing market slows.

At its high levels, the jobs data underpinned expectations that the Fed would not cut rates any time soon, but rather stay on hold for a while longer.

“Friday's US labour report makes it unlikely that markets will start speculating about an early Fed rate cut in the near future,” said Michael Ramon Klawitter at Dresdner Kleinwort.

The euro dipped below 1.30 to the dollar several times after the Friday data, although resistance kept the single currency above that level on Monday.—AFP