The euro extended earlier gains against the dollar in late afternoon trading yesterday, boosted by a rally in the Swiss franc and a positive response from US stock markets to US producer price data, dealers said.

In Europe, the euro closed at $0.9081 compared with $0.9039 at mid-session in Europe and $0.9006 in New York on Thursday. The currency had earlier been pushed up on the back of hawkish remarks from European Central Bank chief economist Prof Otmar Issing and the ongoing threat of intervention.