Dollar in new slump against euro

The weak dollar makes European goods relatively more expensive

The dollar weakened against the euro to hit a new record low, amid continued fears over the state of the US economy stoked by poor job figures.

At one point it took $1.5463 to buy a euro, before the dollar strengthened to $1.5335 in late-afternoon US trade.

Meanwhile, one pound was worth $2.0173, and at one stage it took 101.40 yen to purchase one greenback.

Figures showing a decline of 63,000 US jobs in February came as a surprise, as analysts had expected a rise.

The euro and sterling have been boosted against the dollar by Thursday's decisions in Frankfurt and London to keep interest rates on hold.

European firms are finding it harder to sell their goods as they become relatively more expensive than US products.

Speaking on Thursday, the head of the European Central Bank, Jean-Claude Trichet, said it was likely the euro would remain strong.

The US Federal Reserve has been reducing interest rates to tackle the cooling economy, but the ECB reiterated the need to focus on addressing inflation and suggested a rate cut was not imminent.

Inflation in the eurozone has reached its highest in six years.