The dollar rose against the euro on Monday, boosted by speculation that U.S. inflation may cause the Federal Reserve to be less aggressive in cutting interest rates next year.

    A strong consumer price report released on Friday suggests the U.S. central bank may now feel less inclined to keep cutting rates as it tries to keep inflationary pressures in check.

    The dollar was bolstered recently by a string of economic reports showing higher-than-expected growth. The data eased some speculations that the credit crisis would drag the U.S. economy into a recession.

    Analysts said year-end transactions were also behind the dollar's advance against the euro.

    In late New York trading, the euro bought 1.4398 dollars, down from 1.4425 dollars on Friday.

    The British pound edged up to 2.0213 dollars from 2.0154 dollars, and the dollar slipped to 113.02 Japanese yen from 113.42yen.

    The U.S. currency fell to 1.1503 Swiss francs from 1.1533 francs, and slipped to 1.0064 Canadian dollars from 1.0187 Friday.