The dollar continued its slide against the euro on Monday as the markets reacted to poor economic data.

According to AFP figures, late trading yesterday saw the euro level off around 1.3797,  after at one point reaching as high as 1.3816 dollars and threatening a return to a record of 1.3852 dollars, set earlier this year.

Last Friday saw the release of a US Labour Department report which revealed that there were 4,000 job losses in August.

This is the first-time since 2003 that payrolls in the States have dropped significantly.

Coming as it does on the back of a crisis in the US subprime mortgage lending sector, the data has harmed the dollar further.

The US Federal Reserve is due to meet next week and is widely expected to slash interest rates in a bid to get economic problems under control.