Euro slips slightly on Trichet comments

The euro slipped from a record high against the dollar this afternoon following comments from the European Central Bank (ECB) chief which highlighted Europe's concern over the sharp rise of the single currency.

In his strongest comments to date on the euro/dollar rate ECB president Jean-Claude Trichet, who is chairman of the G10 central bankers, warned against sharp shifts in currency markets.

He said: "Regarding the dollar's excessive volatility, brutal moves are not welcome or appropriate."

He added that there was a "very large degree of convergence" on the currency situation among the G10 central bankers.

The comments sent the euro back to just under $1.28 after it had earlier hit a new high of $1.2898.