* Euro falls broadly as peripheral bond spreads widen
* Concerns over Ireland's fiscal position escalate
* Dollar gains some respite but outlook still gloomy
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By Neal Armstrong
LONDON, Nov 5 (Reuters) - The euro fell on Friday as concerns over Ireland's austerity budget prompted a widening in peripheral euro zone bond spreads, in turn allowing the dollar some respite from a run of heavy losses.
The premium investors demand to hold 10-year Irish government bonds rather than German benchmarks rose to a euro lifetime high after Dublin proposed a budget some traders said was "unrealistic".
Ireland is planning to push through spending cuts and tax hikes worth 6 billion euros next year, the toughest budget in its history, in a last-ditch effort to convince investors it is not on the verge of financial meltdown.
"The euro is down as real-money accounts are starting to take a negative view on the euro zone periphery and the potential impact that any restructure would have on European banks," said Stephen Gallo, head of market analysis at Schneider Foreign Exchange.
European Central Bank Executive Board member Lorenzo Bini Smaghi said on Monday the issue of a country being in a position where it cannot repay debt could not be excluded.
Gallo said that with the Federal Reserve's announcement on further quantitative easing measures out of the way the market was again focusing on the euro zone's structural problems.
The euro was down 0.7 percent at $1.4097 versus the dollar, retreating from a 9 1/2-month high of $1.4283 reached the previous day.
Traders said stop-losses were being hit all the way down, while a surprise drop in German manufacturing orders also dented euro sentiment.
The dollar was up around 0.5 percent versus a currency basket at 76.235, bouncing from an 11-month low touched on Thursday of 75.631 when investors took the Federal Reserve's decision to implement fresh QE on Wednesday as a reason to dump the greenback.
The focus turned to U.S. monthly jobs data, with a weaker number having the potential to reignite dollar selling.
"The Fed has made it clear that quantitative easing will remain in place and there is enough slackness in the U.S. economy. So any strong number is unlikely to offer much support to the dollar," said Ian Stannard, senior currency strategist at BNP Paribas.
Economists polled by Reuters expect 60,000 jobs were created in October after 95,000 were lost in September. That is seen as too feeble a signal to imply any meaningful shift in the stagnant labour market. As a result the unemployment rate is expected to remain sticky at 9.6 percent..
The Australian dollar fell 0.4 percent to $1.0094, having risen to a 28-year high of $1.0183 earlier after a robust quarterly bulletin from the Reserve Bank of Australia.
That contrasted with the Fed's commitment to buy more Treasuries, implying ultra-loose monetary policy, which renewed the focus on the dollar as a funding currency for purchases in commodities, emerging markets and higher-yielding currencies.
The dollar was flat against the yen, at 80.85 yen after the Bank of Japan (BOJ) concluded a policy review without easing further. The yen firmed slightly after the announcement on disappointment that the bank had not unveiled any expansion of its asset buying plan in response to the Fed.
(Additional reporting by Anirban Nag)