March 06, 2008	Thursday	Safar 27, 1429

LONDON, March 5: The besieged US dollar, dragged down by weak US job figures, plunged to a record low against the euro here Wednesday, helping push the price of gold to its highest reading ever.

The euro climbed to $1.53, breaking its previous record of $1.5274 set on Monday, and was later trading at $1.5285 against $1.5210 late Tuesday.

The greenback edged up against the yen, reaching 104.06 after 103.29 on Tuesday.

Gold meanwhile jumped to a record $991.47 an ounce, with the precious metal seen as a safe haven at a time when the US economy, the world’s strongest, is wilting.

Demand for gold has also increased in line with the steady weakening of the dollar against other currencies.

Dollar-denominated commodities such as gold and oil tend to gain as a declining greenback makes them cheaper for buyers using other currencies.

The dollar came under heavy selling pressure after the ADP National Employment Report showed that private sector US firms shed 23,000 jobs in February, well below expectations that around 18,000 new positions had been created.

Analysts said the report suggested that official non-farm employment figures for February, to be released on Friday, could also reveal a loss of jobs by the US economy.

A contracting job market, indicative of sharply slower US economic momentum, raises chances the US Federal Reserve will cut interest rates further, making the dollar far less attractive to investors than the euro.—AFP