NEW YORK, Oct 10 (Reuters) - The U.S. dollar extended gains against the euro on Friday afternoon, rising to a 14-month high against the single currency as plunging stocks and persistently tight credit markets prompted investors to scramble for cash in the world's reserve currency.

The euro was last down 1.3 percent against the dollar at $1.3425 EUR= after falling as low as $1.3414.

"This is just more of risk aversion and deleveraging," said Shaun Osborne, chief currency strategist at TD Securities in Toronto. "It's being dragged down by euro/yen." (Reporting by Nick Olivari and Gertrude Chavez-Dreyfuss; Editing by Leslie Adler)