NEW YORK (CNN/Money) - The euro rose to new highs against the beleaguered dollar in technically motivated trading Tuesday while bonds turned in a mixed performance.

With sentiment toward the greenback still heavily bearish and oil's climb back above $50 a barrel dragging bond yields lower, there was little resistance to the euro's advance.

"There was a lot of options-related stuff going on," Ronald Simpson, managing director of global currency analysis at Action Economics, a research firm in New York, told Reuters.

"Oil is having a bit of an impact in the Treasury market, yields have come off a bit, and that coincided with the rally in euro/dollar," he added.

In late afternoon trading Tuesday, the euro traded at $1.3082, up from $1.3043 late Monday.

The dollar, however, gained strength against the yen, buying ¥103.35, up from ¥103.20 late Monday.

The dollar began to slide after Federal Reserve Chairman Alan Greenspan said Friday the U.S. current account gap is unsustainable, reaffirming a belief that the U.S. wants a weaker dollar to help ease its deficit.

The recent Group of 20 finance meeting intensified the fall after ministers offered no strong measures to halt the greenback's decline.

YOUR E-MAIL ALERTS Currency Exchange Bonds Russia Alan Greenspan or Create your own Manage alerts | What is this?

Nervousness in Asian currency markets also pressured the dollar, with the head of Japan's largest business lobby saying the yen would hurt long-term corporate earnings if it became too strong. He added it would be difficult to curb its strength against the dollar through intervention.

In the bond market, the benchmark 10-year note fell 2/32 of a point to 100-15/32 to yield 4.19 percent, up slightly from 4.18 late Monday. The 30-year bond gained 5/32 of a point to 107-29/32 to yield 4.84 percent, down from 4.85 on the session. Bond prices and yields move in opposite directions.

The two-year note was unchanged at 99-4/32 to yield 2.96 percent, and the five-year note lost 2/32 to yield 3.58 percent.  

-- from staff and wire reports