NEW YORK (AP) — The dollar fell against major currencies Monday as oil prices hit a new record and a report on manufacturing activity in the US underlined worries about the country's economy.

In late New York trading, the euro bought $1.5489, up from $1.5354 late on Friday. The British pound rose to $1.9635 from $1.9469.

The declining dollar helped push up the price of oil to a new record of nearly $140 per barrel before it reversed its course to settle at $134.61 a barrel on the New York Mercantile Exchange.

Meanwhile, the New York Federal Reserve Bank's Empire State Index indicated that manufacturing activity in New York state continued to weaken in June.

The index fell to minus 8.7 from minus 3.7 a month earlier. The report is the earliest of several monthly regional snapshots that investors look to for insights on economic activity.

Wall Street is worried that rising prices in an already uncertain economy will cause consumers to cut spending. A pullback could deal a blow to the economy, as US consumer spending accounts for more than two-thirds of the country's economic activity.

"The dollar was already off balance and on the ropes, and this manufacturing report further undermined it," said Michael Woolfolk, senior currency strategist at Bank of New York Mellon, adding that the dollar recovered slightly after the Treasury Department released strong US Treasury International Capital data for April.

In other late New York trading, the dollar slipped against the Japanese currency, buying 108.12 yen compared with 108.21 yen, and eased to 1.0446 Swiss francs from 1.0498 Swiss francs. The dollar fell to 1.0238 Canadian dollars from 1.0290.