* Euro at 7-mth low vs dollar on euro zone fiscal problems
* ECB leaves rates on hold, BoE pauses quantitative easing
* U.S. weekly jobless claims more than expected
(Recasts, updates prices, adds comment)
NEW YORK, Feb 4 (Reuters) - The euro hit a seven-month low against the dollar on Thursday amid ongoing concerns over the fiscal health of some euro zone countries, with ECB President Jean-Claude Trichet predicting many members in the bloc will have large, sharply rising fiscal imbalances.
The European Central Bank chief was speaking at a news conference after the ECB left its benchmark lending rate unchanged at 1 percent. Trichet said high public debt and deficits would place additional burdens on monetary policy.
Worries over debt levels in Spain and Portugal have increased as investors speculate the two countries may face similar problems over budget deficits and debt as Greece has. These concerns helped lift the safe-haven U.S. dollar to a six-month high versus a currency basket.
"Basically (Trichet is) acknowledging a very drawn-out, sluggish recovery subject to intense uncertainty," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey. "The key thing is that rates are not moving anytime soon. With that and continued concerns over the fiscal situation, it's just another weight around the euro's neck."
In early New York trade, the euro was trading down 0.6 percent on the day at $1.3819, close to an earlier low of $1.3812, its weakest since June 2009. Weakness was partly attributed to widening in Greek, Portuguese and Spanish bond yield spreads over German benchmarks.
"Looking ahead, the Governing Council expects the euro area economy to grow at a moderate pace in 2010," Trichet said. "The recovery is likely to be uneven and the outlook subject to uncertainty.
Sterling trimmed some losses against the dollar after the Bank of England announced a pause in asset purchases under quantitative easing, as expected. It left the door open to more purchases should the outlook warrant it.
Sterling traded at $1.5826 against the dollar, down 0.5 percent on the day but above an earlier three-and-a-half month low of $1.5806 reached in the run-up to the BoE decision.
STRONG U.S. DATA
Traders sold the single European currency on the view that dismal public finances in euro zone countries may hinder any economic improvements in the region, increasing the probability that the U.S. economy will recover more quickly.
Mostly strong U.S. data this week supported this view, though risk-averse traders flocked to the yen, particularly after after data showed initial U.S. weekly jobless claims unexpectedly rose last week.
The dollar was 0.5 percent lower at 90.55 yen. The euro fell 1 percent to 125.19 yen.
Investors are now largely focused on the key U.S. non-farm payrolls numbers due on Friday.
The dollar hit a six-month high of 79.755 versus a basket of currencies, trading well above its 200-day moving average.
The New Zealand dollar hit a five-month low after data showed the country's jobless rate hit a 10-year high while weak Australian retail sales data pushed the Aussie to a six-week low.