LONDON (AFP) - The dollar dipped against the euro on Thursday as investors fretted once more over the plight of the troubled US banking sector, analysts said. The euro also gained ground despite news that European consumer and business confidence slumped to a record low in February, they added. In morning London trade, the European single currency rose to 1.2774 dollars from 1.2721 late on Wednesday. Against the Japanese currency, the dollar advanced to 97.87 yen from 97.37 yen on Wednesday. "Investors remain concerned that some of the largest (US) banks face nationalization in the immediate future," said UBS analyst Geoffrey Yu. "The lack of details on the government's comprehensive plan to resolve outstanding problems in the financial sector is proving to be a serious hindrance to sentiment." But the greenback rose against the yen amid renewed hopes of action by Washington to help banks hammered by the credit crunch. President Barack Obama is seeking an option for spending 250 billion dollars more to rescue the US financial industry in the budget outline to be unveiled later Thursday, the Wall Street Journal reported. Investors were also selling the yen because of deepening fears about the health of the Japanese economy, they added. Meanwhile, it emerged Thursday that European consumer and business confidence slumped to a record low in February, a fresh sign of the deepening recession, according to a widely-watched EU study. In London trading on Thursday, the euro changed hands at 1.2774 dollars against 1.2721 dollars late on Wednesday, at 124.89 yen (123.89), 0.8945 pounds (0.8955) and 1.4840 Swiss francs (1.4885). The dollar stood at 97.87 yen (97.37) and 1.1629 Swiss francs (1.1699). The pound was at 1.4267 dollars (1.4204). On the London Bullion Market, the price of gold fell to 946.08 dollars an ounce from 978.50 dollars on Wednesday.