* More losses seen in euro, support at $1.3144, $1.3045 * Italian yields soar after weak auction * Safe-haven flows buoy dollar to 7-week high vs basket By Wanfeng Zhou NEW YORK, Nov 25 (Reuters) - The euro slid to a more than seven-week low against the U.S. dollar on Friday and was set to weaken further as a disappointing Italian auction stoked fears the euro zone crisis was deepening. Italy paid a record 6.5 percent to borrow money over six months on Friday and its longer-term funding costs soared far above levels that are seen as sustainable. The rise in borrowing costs came even as the European Central Bank (ECB) bought bonds in the secondary market. Signs the euro zone debt crisis was threatening the region's biggest economies such as France and Germany have raised fears of a breakup of the currency bloc. Policymakers remained in disagreement over how to resolve the crisis, with Germany opposed to joint euro zone bonds and a bigger role for the ECB. "The market is rapidly growing impatient, and with no comprehensive plan in place for Europe, the mood is deteriorating rapidly, in turn weighing heavily on debt and currency markets," said Camilla Sutton, chief currency strategist at Scotia Capital in Toronto. The euro fell 0.7 percent to $1.3253, having dropped as low as $1.3210, based on Reuters data, its lowest since Oct. 4. Key support lies around $1.3144, the euro's October low, followed by $1.3045, the 61.8 percent retracement of its 2010-2011 rally. The euro has lost about 1.9 percent this week and was on track for a fourth straight week of losses. It came under heavy pressure after lackluster demand at a German bond auction on Wednesday. Italy's two-year yield rose to a euro-era high above 8 percent and 10-year yields traded above 7 percent, a level that is seen as unsustainable. Belgian bonds were also under pressure ahead of auctions next week. The dollar rose to a seven-week high versus a currency basket as investors sought the liquidity and perceived safety of the U.S. currency. "Unless we see firm action from European authorities, the market is betting the worst is about to happen and the dollar is therefore well bid on demand for liquidity," said Jane Foley, currency strategist at Rabobank. Against the yen, the dollar rose 0.7 percent to 77.64 after hitting a two-week high of 77.12. The euro hit a seven-week low of 102.46 yen based on Reuters data, before rebounding to last trade at 102.98, up 0.1 percent on the day.