Dollar falls to record euro low

The euro gets a boost from a weaker dollar

The dollar has fallen to a new all-time low against the euro after data showed that US economic growth disappointed in the first three months of the year.

The 1.3% first quarter economic expansion - the slowest pace for four years - pushed the greenback down 45 cents to $1.3658 in Friday trade.

Analysts predict the US currency will fall further on renewed expectations of interest rate cuts to support growth.

The pound strengthened against the dollar, still trading above $2.

Tainted

US GDP figures were tainted by lower exports and widespread problems in the world's biggest economy's housing market.

"I think we're going to see 1.38 [euros to the dollar] without too much trouble here," said Joe Trevisani, chief market analyst at FX Solutions, in Saddle River, New Jersey.

On the other hand, the upward momentum in the European single currency is being bolstered by strong economic growth in the 13-member eurozone.

The euro also reached a record peak against the Japanese yen, hitting 162.88 after the data was released.