TOKYO, Feb 26 The dollar slipped to a seven-week low against the euro in early Asia trade

TOKYO, Feb 26 (Reuters) The dollar slipped to a seven-week low against the euro in early Asia trade on Monday as the U.S.

currency came under pressure on renewed worries about Iran's nuclear programme.

Traders said the dollar's latest slip was partly due to the surge in gold and oil prices as Western powers were set to meet in London to discuss tightening sanctions on Iran over its nuclear programme amid a flurry of tough talk between Washington and Tehran.

Gold prices which tend to move inversely with the dollar, have jumped nearly 15 percent from their lows in early January to near $700 an ounce.

''Continuing concern over Iran's nuclear programme caught attention,'' said currency strategists at BNP Paribas in a note to clients.

The dollar has mainly come under pressure on expectations for the Federal Reserve to trim rates from the current 5.25 percent later in the year, even as the European Central Bank seems set to raise rates further next month to 3.75 percent from 3.5 percent.

Little major economic data is set for release in the United States or Europe later in the session to help shape the outlook for rates.

The minutes of the Bank of Japan's January meeting at 0500 GMT are likely to get only brief attention after the BOJ raised rates last week to a decade-high of 0.5 percent.

The yen slid to new record lows against the euro last week despite the BOJ's move as the central bank is seen taking at least six months or more before lifting rates again.

A wide array of investors have used the cheap yen as a source of funds for buying higher-yielding currencies in the carry trade, while Japan's low rates have also prompted domestic investors to see better returns in foreign assets.

The euro climbed to $1.3192, the highest since Jan. 3, before easing back to $1.3187 -- up 0.2 percent from late New York trade last week.

The dollar slipped to 1.2300 Swiss francs after hitting a seven-week low of 1.2295 francs on Friday.

The U.S. currency dipped 0.2 percent to 120.83 yen after rising as high as 121.64 yen last week, back near the four-year high of 122.20 yen hit in January.

The single European currency was little changed near 159.35 yen near the all-time high of 159.63 yen struck last week and eyeing the 160 yen mark.

REUTERS SBA RN0611