The dollar is holding on to a firmer tone versus the euro early Tuesday in New York, supported by reduced odds of Federal Reserve rate cuts later this month following last week's strong U.S. employment data. The greenback's modest gains overnight versus the single currency came amid testimony by European Central Bank President Jean-Claude Trichet to the European Parliament. Trichet repeated that there was heightened uncertainty given the recent financial market turbulence, comments that were read as negative for the euro as they suggest the ECB is in no hurry to hike rates. But Trichet also reiterated the risk of higher inflation remains in place. He "basically stuck to his comments and tone from Thursday's press conference highlighting that the ECB stands ready to act against inflation but that more data was required first before making a fresh decision on rates," said Dustin Reid, currency strategist at ABN Amro Bank in Chicago. Meanwhile, an anticipated statement late Monday from euro-zone finance ministers issued failed to express as much concern as expected about the euro's recent strength. The ministers simply noted with "great attention" that the U.S. still considers a strong dollar in its best interests. They also said China should allow its tightly-managed yuan currency to appreciate further. Elsewhere, the yen is a bit stronger versus the dollar, but mostly range-bound ahead of a Bank of Japan meeting later this week.