The dollar slipped yesterday after weak US jobs data gave a further sign that the economic recovery was in peril and raised speculation the Federal Reserve's next move might be to ease, not raise, rates.

But investors had little appetite for aggressive purchases of European currencies or the yen, mindful of how a US slowdown could hurt modest recoveries in Europe and Japan.

"That's one of the problems of a globalised economy, and it's why people are puzzled and don't know what to do. Where can the risk capital really go?" asked a trader at a European bank in New York.

By early afternoon in New York, the euro was trading at 98.72 cents, up 0.36 per cent in the session. In European trading, the euro closed at 0.9864 cents.

The dollar was down 0.21 per cent against Japan's currency at 119.05 yen.

Dealers said the dollar's reaction to the poor jobs data was muted because the market had positioned itself for bad news. - (Reuters)