Poor U.S. growth sends dollar to record euro low

LONDON (Reuters) - Weaker-than-expected U.S. growth for the first quarter drove the dollar to a record low against the euro on Friday and added to losses on equity markets.

The data stoked expectations that the U.S. Federal Reserve would cut U.S. interest rates.

Wall Street looked set for a poor start after the Commerce Department said weaker exports and a steady slide in spending on homebuilding had helped slow U.S. economic growth to its softest pace in four years.

Gross domestic product or GDP, which measures total goods and services output within U.S. borders, increased at a weaker-than-expected 1.3 percent annual rate in the three months from January through March.

The euro shot up to $1.3682, its highest ever level while European stocks dipped further. The FTSEurofirst 300 .FTEU3 index was down 0.7 percent.

European bonds spiked briefly while U.S. Treasuries rose.