LONDON, Nov 30, 2007 (AFP) - The dollar slid against the European single currency on Friday after US Federal Reserve chief Ben Bernanke stoked expectations of another reduction in US borrowing costs, analysts said.

In early European trading, the euro rose to 1.4752 dollars from 1.4742 late on Thursday in New York. At the end of last week, the euro had hit a record 1.4967 dollars.

On Friday, the dollar climbed to 110.38 yen, from 109.88 late Thursday.

Fed chairman Bernanke gave a speech overnight that was widely interpreted as a signal for another likely rate cut at the US central bank's next policy meeting on December 11.

"The dollar has been driven higher against the majority of the majors, including the yen and the Swiss franc ... following Fed chairman Bernanke's comments," said ABN Amro analyst Melinda Smith.

She added: "He did not promise a rate cut, but we think that judging from the recent escalation in market stress, he will deliver one next month."

"Despite the fact that his comments were hardly an optimistic prediction of the US economic outlook, the market took the signal of a forthcoming rate cut positively."

As usual, Bernanke made no explicit comment on the Fed's next step on monetary policy.

However, his remarks echoed the words of vice chairman Donald Kohn in a speech Wednesday that Wall Street also interpreted as a hint that the US central bank would trim rates some time soon.

Bernanke said that the Fed saw a high degree of uncertainty in the US economic outlook and was worried that strains in financial markets may lead to broader problems.

He said policymakers are carefully monitoring "mixed" economic data, with a depressed housing sector, strong labor market and consumer spending "on the soft side."

Investor optimism has surged for a US interest rate cut next month to bolster the US economy and avert a recession, dealers said. American borrowing costs stand currently at 4.50 percent.

The dollar will be tested later Friday when US data on personal incomes and personal expenditures are published, followed by the Chicago manufacturing survey.

In European trade Friday, the euro changed hands at 1.4752 dollars, against 1.4742 late on Thursday, at 162.72 yen (162.02), 0.7139 pounds (0.7151) and 1.6529 Swiss francs (1.6484).

The dollar stood at 110.38 yen (109.88) and 1.1207 Swiss francs (1.1179).

The pound was at 2.0664 dollars (2.0610).

In London, the price of gold rose to 795.20 dollars per ounce from 794.50 dollars late on Thursday.