The US dollar surged and the euro sank on Friday after US labour data for June showed the economy was not pumping out the jobs needed to bring down the high unemployment rate.
The data told investors that the US was as stuck in low-growth mode as the rest of the world but also raised hopes that the government and Federal Reserve would add efforts to boost the economy.
The euro lost more than a cent, falling to $1.2287 from $1.2391, the euro's lowest level against the dollar since July 1, 2010.
The US Labor Department reported on Friday that the US netted only 80,000 fresh jobs last month and 75,000 a month on average in the second quarter - far short of what was needed just to keep up with the growth of the labour market.
The numbers echoed other data indicating that already feeble growth was decelerating in the second quarter.
"US data will now be in sharp focus over the next month, as further declines in indicators would surely build the case" for new stimulus measures from the Fed, said ETX Capital trader Ishaq Siddiqi.
The euro had already tumbled sharply on Thursday after three central banks - the People's Bank of China, the European Central Bank, and the Bank of England - took action to help their respective economies, but served only to underscore world economic weakness.
Traders thought the ECB's actions did not go far enough to address the eurozone's ills.
"It may be that the markets think non-conventional monetary policy is becoming increasingly ineffective and that the problem of a 'liquidity trap' has not been resolved," said economist Neil MacKinnon at VTB Capital.
The yen continued to strengthen, after IMF chief Christine Lagarde acknowledged in Tokyo early on Friday that the currency was "moderately overvalued".
Prime Minister Yoshihiko Noda had complained to Lagarde that Japan's economy was "suffering a serious, adverse impact" over the currency's strength.
The British pound fell again against the dollar, to $1.5485 from $1.5525. The dollar bought 0.9771 Swiss francs, compared with 0.9692 francs a day earlier.
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