The dollar was under growing pressure Tuesday after another series of disappointing US data added to worries about the economic recovery ahead of key jobs figures due later in the week. Dealers said that if the US economy slows further, the US Federal Reserve might have to step in with fresh stimulus measures which will likely weaken a dollar already slipping back steadily against the euro and yen. In late London trade, the euro was at 1.3227 dollars, off an early high of 1.3262 dollars -- its best level since May 3 -- but up from 1.3178 dollars in New York late Monday. The dollar sank to 85.91 yen, off a low of 85.73 yen earlier which was its weakest level against the Japanese unit since 27 November, 2009. The dollar was at 86.46 yen in New York on Monday. 'The markets are alert to speculation that the Fed could implement a fresh round of quantitative easing which partly explains -- on top of good earnings figures -- the (recent) rally in equities and the weakness in the dollar,' said VTB Capital global macro strategist Neil MacKinnon. 'The dollar remains under downward pressure ... as the financial markets continue to ponder the prospect of additional (Fed) monetary easing,' said economist Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ in London. Analyst Adam Solomon, at online trading site TorFX, said the euro was lifted by 'speculation that a slowing US economy will force the Fed to increase fiscal stimulus measures to shore up the recovery'. Fed chairman Ben Bernanke warned on Monday that cuts in state government spending were slowing the economic recovery, while a slew of weak US data Tuesday -- home sales, spending and income, and factory orders -- all increased unease over the outlook. The dollar was additionally under pressure against the yen as the Japanese authorities showed no inclination to halt the slide so as to defend the key export sector. 'While acknowledging the downside of such strength, (the Japanese finance minister) made no mention of intervention, or the possibility of such intervention,' noted Michael Hewson of CMC markets in London. This suggested that 'for now ... Japanese authorities remain sanguine about current yen strength,' he added. In late London trade, the euro changed hands at 1.3227 dollars against 1.3178 dollars on Monday, at 113.65 yen (113.97), 0.8298 pounds (0.8291) and 1.3742 Swiss francs (1.3694). The dollar stood at 85.91 yen (86.46) and 1.0388 Swiss francs (1.0385). The pound was at 1.5938 dollars (1.5890). On the London Bullion Market, the price of gold fell to 1,187.50 dollars an ounce from 1,188.50 dollars an ounce on Monday. 