The euro shot up to a record 1.2171 to the dollar here Friday as the faltering US currency was hurt by disappointing job creation figures in the United States.
The euro in late-day trading was at US$1.2153 against 1.2085 in New York late on Thursday. The single currency at one point climbed to an all-time high of US$1.2171, eclipsing its previous record -- set Thursday -- of US$1.2160.
Against the yen the dollar fell to ¥107.83 from ¥108.19.
Weak data
The dollar took a beating following an announcement in Washington that US non-farm payrolls in November rose by 57,000, well below market expectations of a 140,000 increase.
"The dollar is ending the week on a weak note due to weak data," said David Mann, currency strategist at Standard Chartered.
He noted that the dollar had also been sold in the wake of positive US data this week because of lingering anxieties over the gaping US current account deficit.
"Sentiment is very strongly anti-dollar," said Mann.
While there is likely to be some profit-taking along the way, the question on traders' minds is how low the dollar can go.
"Euro/dollar may be pushed to euroland's `threshold of pain' of around 1.22-1.25, but this will likely be followed by a correction," predicted Morgan Stanley analyst Stephen Jen.
Attention is now switching to next week's meeting of Federal Reserve policymakers amid widespread speculation that the Fed -- the US central bank -- will drop its accommodative language, paving the way for a rate hike in the spring.
The dollar's decline Friday also occurred against the yen, with most market participants sceptical about the Bank of Japan's ability to stem the tide.
A MATTER OF TIME
"It is only a question of time when the BoJ will allow dollar/yen to slip lower, given that Japan's economy is outperforming that of the eurozone and Japan is attracting considerable capital inflows," said WestLB analyst Michael Klawitter.
"We have no doubt that at the next Group of Seven meeting (of finance ministers from the world's seven leading industrialized nations) Japan's currency intervention will once again be a topic," he added.
The euro was changing hands at US$1.2153 from US$1.2085 late on Thursday in New York, ¥130.99 (¥130.85), £0.7037 (£0.7015) and 1.5517 Swiss francs (Sf1.5567).
The dollar stood at ¥107.83 (¥108.19) and 1.2771 Swiss francs (Sf1.2878).
The pound was at US$1.7276 (US$1.7218), ¥186.19 (¥186.39) and 2.2050 Swiss francs (Sf2.2174).
On the London Bullion Market, the price of an ounce of gold edged up to US$402.40 from US$402.25 on Thursday.
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