NEW YORK (AFP) - The dollar declined slightly against the euro in New York trading in the face of rocketing oil prices, which surged above a record 51 dollars a barrel, and in the wake of tepid economic reports.
The single European currency climbed to 1.2309 dollars at 2115 GMT Tuesday from 1.2283 dollars late Monday in New York.
However, the dollar rose against the Japanese yen, climbing to 111.15 yen from 110.96 late Monday.
"The euro jumped initially on the (non-manufacturing activity report), but the rally seems to have fizzled," said Dale Doelling, a technical analyst at Chicago-area research firm Trends in Commodities.
"With energy prices still high and uncertainty regarding the amount of strength in the economy, this (economic) data adds to that uncertainty," said Drew Matus, financial economist at Lehman Brothers.
Some traders fear sky-high oil prices -- New York's main crude oil contract shot up 1.18 dollars to close at 51.09 dollars Tuesday -- could apply a sharp brake to the US economy and said this contributed to the slight dollar sell off.
Fresh US economic data also applied pressure on the dollar as the market awaits a key US jobs report due Friday.
The vast US services sector grew at a slower pace in September as hurricanes and high energy prices inflicted pain, a survey showed Tuesday.
The Institute for Supply Management (ISM) said its index of non-manufacturing activity fell 1.5 points from the previous month to 56.7, a little lower than expected by many analysts.
It was still the 18th consecutive reading above 50 points, indicating expanding activity.
There was also grim news on the job front ahead of Friday's monthly snapshot on the national US job market.
US firms announced the steepest job cuts in eight months in September and also slashed hiring plans, a survey showed.
Employers announced 107,863 job cuts in September, up 45 percent from August, according to a survey released by the outplacement firm Challenger, Gray and Christmas.
It was the biggest one-month cut since January.
Compared with a year ago, job cuts were up 41 percent.
"The return to six-figure job-cut levels paints a grim picture for ongoing economic growth, as such activity is generally considered a measure of how companies view future business conditions," said the firm's chief executive, John Challenger.
In late New York trade, the dollar was changing hands at 1.2619 Swiss francs against 1.2645 Monday.
The British pound was at 1.7818 dollars from 1.7839 late Monday.