LONDON, Dec 17: The dollar firmed against the euro on Monday on investor speculation the Federal Reserve may be done at least temporarily with cutting interest rates in the face of rising US inflation.

The single European currency in late day trade was at $1.4370 against $1.4429 late Friday in New York. The euro at one point in the day fell to $1.4331, its lowest reading since October 26.

Since hitting a record peak of $1.4967 on November 23, the euro has declined 4.0 per cent against the greenback.

A surge in US inflation reported on Friday was followed by news Monday that appetite for US assets recovered in October, suggesting the US economy may be somewhat healthier than had been feared.

In European trading on Monday, the euro changed hands at $1.4370, against $1.4429 late Friday, at 162.76 yen (163.41), 0.7132 pounds (0.7149) and 1.6572 Swiss francs (1.6632).

The dollar stood at 113.26 yen (113.23) and 1.1532 Swiss francs (1.1525).

The pound was at $2.0151 ($2.0177).—AFP