The euro fell below $1.20 this afternoon for the first time in more than four years, as worries about the euro zone debt crisis resurfaced.
The single currency dropped as low as $1.1993, its lowest point since March 29 2006. Traders said comments from the French Prime Minister Francois Fillon, who said he was relaxed about the euro's fall against the US dollar, and the Hungarian PM's spokesman comparing Hungary's budgetary position to that of Greece, sent the euro lower.
The fall came despite weaker than expected jobs figures from the US, which sent share prices lower.
Earlier, figures showed that the euro zone economy posted growth of 0.2% in the first quarter of 2010, narrowly up on the previous three-month period but well short of US and Japanese rivals.
Compared with the corresponding three months in 2009, seasonally-adjusted gross domestic product for the 16 countries that share the euro currency showed an increase of 0.6%, revised up from earlier figures.
The previous quarter's data was amended to show 0.1% growth having previously been reported as flat. Throughout the 27-nation EU as a whole, which also includes Britain and Poland, the first quarter also showed 0.2% growth, with 0.5% annual growth.
The breakdown of national figures last month had shown crisis-hit Greece's economy shrinking by 0.8% and that of Estonia, due to enter the euro zone next year, contracting by 2.3% on a non-seasonally adjusted basis.
Of the major euro zone countries, Italy had posted the fastest growth, at 0.5%, while Germany was in line with the average whereas both France and Spain lagged narrowly behind.
The overall figures for the euro zone and the EU compared unfavourably to first quarter growth of 0.8% for the US, a slight retreat from the previous quarter. However, Japan powered ahead with 1.2% growth.
Detailed data showed that household spending and investments in the euro zone both slipped. Exports rose by 2.5% in the euro zone, but imports increased by 0.6%.
