LONDON, May 21 (AFP) - The euro edged dangerously close to setting record lows Friday on the European exchange, after mixed German economic news and concerns over the continuing conflict in Kosovo. The euro levelled off at 1.0570 dollars at 1545 GMT Friday, after having reached as low as 1.0549 dollars late afternoon, a record low on the London exchange. The lowest value the single European currency has ever attained was 1.0541 dollars, recorded in New York on April 30. The dollar remained strong against the Japanese yen at 123.99 yen compared to 124.07 yen Thursday. Traders were apparently taking their cues from reports of a slump in the business climate in western Germany in April, highlighted in a survey published Thursday by the Ifo economics research institute in Munich. But according to figures released Friday, inflation is slowing in Germany's main regional states. The hazy figures regarding German inflation indicate the European Central Bank (ECB) could still cut interest rates, said Steve Hannah of IBJ International in London. The last time the ECB cut interest rates was April 8. The bank decided Thursday to leave its main short-term interest rate unchanged at 2.5 percent. The dollar made a quick recovery from news Thursday of a record trade deficit of 19.7 billion dollars for March. The dollar's fall below the 124-yen mark Thursday was due to technical factors, analysts said. Sterling fell against the dollar but climbed slightly against the euro. The euro was being traded at 1.0570 dollars from 1.0633 on Thursday, 131.05 yen from 132.82, 0.66 pounds from 0.6590 and 1.6075 Swiss francs from 1.6030. The dollar was being traded at 123.99 yen from 124.07 and 1.5180 Swiss francs from 1.5078. Sterling was being traded at 1.6021 dollars from 1.6131, 198.64 yen from 200.03, and 2.4322 Swiss francs from 2.4318. The gold spot price moved up to 272.75 dollars an ounce from 274.15 dollars. -=-=- 