The US dollar has hit a 26-year low against the pound and set a record low in trading with the euro.

By late Friday, the euro had completed a 1.1 per cent rise against the dollar over the course of the preceding week, reaching 1.3814 - a new record - before levelling off around 1.3782.

Likewise, the pound made gains of just over one per cent on the dollar in the course of last week's trading, hitting a new high of 2.0367.

It is the fifth consecutive week that the dollar has dropped against both currencies on the back of economic data from the US.

Jeff Gladstein, global head of currency trading at AIG Financial Products, told Bloomberg: "The market sentiment is still to sell the dollar, there is nothing fundamental to change that direction right now."

A slew of US government data is due later this week, including a monthly report on inflation, plus manufacturing reports from the New York and Philadelphia regions.