FOREX-U.S. dollar falls from 11-month high versus euro

* Dollar slips from 11-month high versus euro

* U.S. economy loses jobs for eighth straight month

* Jobless rate highest since matching 6.1 pct in Sept 2003

(Updates prices, adds details)

By Wanfeng Zhou

NEW YORK, Sept 5 (Reuters) - The U.S dollar slipped from 11-month highs against the euro on Friday, after government data showed the U.S. economy lost jobs for the eighth straight month and the unemployment rate jumped.

The ongoing weakness in the U.S. labor market cast doubts about the resilience of the U.S. economy, but with European economies in trouble also the U.S. dollar's uptrend of the past month remained intact.

"While today's weaker than expected U.S. employment report for August may provide the euro with some respite, the eurozone's activity and sentiment indicators are also deteriorating," said Samarjit Shankar, global FX strategist at Bank of New York Mellon in New York.

"This is likely to weigh on EUR/USD in the coming weeks," he said.

The Labor Department said 84,000 jobs were lost in August, higher than the 75,000 that economists surveyed by Reuters had forecast, while data for June and July were revised to show bigger job losses also. The unemployment rate also rose, to its highest since September 2003. For more details, see [ID:nN05415312].

In midday trading in New York, the euro was up slightly at $1.4259 <EUR=>. Earlier, it hit an 11-month low at $1.4197, according to Reuters data.

Against the yen, the U.S. dollar recouped earlier losses and last traded at 107.14 yen <JPY=>, up 0.5 percent on the day.

The ICE Futures U.S. dollar index, which tracks the value of the greenback against a basket of six currencies, was at 78.880 .DXY, after seeing a new 12 month high on Thursday..

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