Dollar sinks to new low against euro, gold up in Europe

LONDON -- The dollar sank to another record low against the euro on Monday -- an 11-year low against the British pound in European trading. Gold prices rose.\nThe euro traded as high as $1.2898 in Europe, and was quoted at $1.2875 by late morning, up from $1.2828 Friday. The 12-nation euro currency has gained 2.2 percent against the dollar so far this month.\nThe euro has risen steadily against the dollar in the past several months on concerns over the U.S. trade and budget deficits. Its last record of $1.2870 was set Friday on weaker than expected U.S. jobs data.\nTraders said the dollar was still feeling the effects of that report Monday. A drop in the U.S. jobless rate of 0.2 percentage point occurred because 300,000 people stopped looking for work, the Labor Department said.\nThe euro's rally has gathered speed as top officials in Europe and America have not signaled any willingness to step in and try to slow it.\nEuropean Central Bank head Jean-Claude Trichet said Thursday that worries the euro would hurt European exports -- by making producers' goods more expensive against foreign competition -- were balanced by the prospect of rising demand from a growing world economy.\nTrichet was joined by other top central bankers at a meeting in Basel, Switzerland, on Monday where traders watched for any sign of a tougher line.\nThe British pound rose to an 11-year high of $1.8577 in European trading and was quoted at $1.8534 by late morning, up from $1.8442 late Friday.\nOther dollar rates in morning trading Monday in Europe compared with late rates Friday included: 106.43 Japanese yen, up from 106.42; 1.2159 Swiss francs, down from 1.2206, and 1.2706 Canadian dollars, up from 1.2701.\nGold dealers in London fixed a recommended price of $428.20 bid per troy ounce at midmorning, up from $424.60 on Friday. In Zurich the bid was $427.62, up from $426.07.\nGold rose $5.00 in Hong Kong to $427.75.\nSilver opened in London at $6.56 bid per troy ounce, up from $6.35.