The dollar's woes continued today in the wake of a US labour market report that fell shy of estimates.
The euro was about flat against the dollar just ahead of the US data release. The euro since has gained 0.3 per cent at $1.2114 and remains near its all-time peak hit earlier this week.
The dollar fell 0.1 per cent against the yen at 107.98 yen. The US unemployment rate dipped to 5.9 per cent in November while nonfarm payrolls rose by a disappointing 57,000.
Payrolls rose for the fourth month in a row, the Labor Department reported today, while grocery store strikes reduced the level of employment by about 26,000 to 31,000. Economists expected payroll growth of about 140,000.
Financial markets reacted largely to disappointing headline figures, although some aspects of the data show a labor market recovery is on track, analysts said.
The dollar has fallen to multi-year lows against a host of currencies and all-time lows against the euro as investors fret about the sustainability of foreign demand for US assets in order to fund a record US trade gap. A sharp reversal of capital flows would hurt the dollar even more severely.