LONDON - The European single currency sank below $1.23 (S$1.58) on Friday in the wake of poor US jobs data.

At about 1230 GMT, the euro dived to $1.2296, touching a low last seen on July 1, 2010, before recovering slightly. Despite the weak data, investors sought safety in the dollar amid the eurozone's debt strains, traders said.

The US economy added only 69,000 jobs in May, pushing the unemployment rate up to 8.2 per cent, the Labor Department said on Friday.

The closely-watched workforce figures were well below expectations of a 150,000 jobs increase and for the jobless rate to hold steady at 8.1 per cent from April.

"A fairly horrible payrolls report, with the headline number rising by a miserable 69,000," said ING Bank analyst Rob Carnell.