Euro extends losses as Trichet warns about 2009 activity

NEW YORK, July 2 - The euro extended losses against the dollar after European Central Bank President Jean-Claude Trichet said euro-zone activity would likely remain weak for the rest of the year.

The ECB left interest rates at 1 percent as expected, and Trichet said stabilization in 2010 would be followed by a recovery.

The euro was last trading at $1.4025 <EUR=>, down about 0.9 percent on the day, after falling to a session low of 1.4016, according to Reuters data.

It was also weaker after U.S. data showed employers cut more jobs than expected last month, adding to safe-haven demand for the U.S. currency. (Reporting by Steven C. Johnson; Editing by Theodore d'Afflisio)