NEW YORK (Reuters) - The dollar extended losses versus the euro on Friday after a government report showing a continued drop in U.S. consumer prices helped revive investor risk appetite. The euro was last at $1.3294 EUR=>, up 1.1 percent on the day, compared with $1.3277 before the release of the data. "(The data) just goes to show that inflationary pressures continue to moderate," said Joe Manimbo a currency trader at Ruesch International in Washington. "At this point, it should underpin risk appetite, which could weigh on the dollar." The Labor Department said its closely watched Consumer Price Index dropped 0.7 percent after falling 1.7 percent in November -- tumbling for a third straight month. Analysts polled by Reuters had forecast headline CPI dropping 0.9 percent in December. For more, see ID:nN15536036. | 
