London: The dollar gained on the euro yesterday after a dismal US employment report prompted investors to shun the single currency for the safe haven of the greenback on a day when gold prices surged to a record high. The euro in late-day trade was at $1.4841 against $1.4868 on Thursday in New York.

The dollar was meanwhile trading at 89.83 yen after 90.72 on Thursday. Currency market sentiment was dominated by news that the US unemployment rate jumped to double digits in October for the first time since 1983, reaching 10.2 percent and underscoring slow progress toward curbing joblessness in an economy emerging from recession.

Yesterday’s Labour Department report, seen as one of the best indicators of economic momentum, showed job losses narrowed last month to 190,000. President Barack Obama called the numbers “sobering” and said his administration was considering “further steps” to spark job growth.

The employment data, deepening investor uncertainty about the fundamental health of the US economy, led traders to abandon currencies such as the euro and the pound sterling for those seen as less risky, notably the dollar.

The price of gold meanwhile hit a record high above $1,100 an ounce following a report that Sri Lanka had joined India in purchasing the precious metal in favour of the US currency.

In London, the euro was changing hands at $1.4841 against $1.4868 on Thursday, 133.33 yen (134.88), £0.8943 (£0.8965) and 1.5106 Swiss francs (1.5112). The dollar stood at 89.83 yen (90.72) and 1.0178 Swiss francs (1.0162). The pound was at $1.6594 ($1.6577). On the London Bullion Market, the price of gold stood at $1,096.75 an ounce at the fixing against $1,089 an ounce on Thursday.