NEW YORK (CNN/Money) - The dollar struggled back from overnight lows Friday to trade slightly lower at midday after Chinese officials denied reports they were easing investment in U.S. dollar assets.

Around 12:15 p.m. ET, the euro bought $1.3288, up from $1.3220 late Wednesday but down from the record overnight low of $1.3329 Against the yen, the dollar traded at ¥102.56, down slightly from ¥102.85.

The dollar slid to its record low of $1.3329 per euro during Asian hours after a Chinese newspaper quoted a member of China's central bank policymaking committee as saying that the country had already begun reducing U.S. dollar assets in its foreign exchange reserves.

But the greenback later rebounded after the banker quoted in the article issued a statement saying he had no knowledge of the central bank's action on reserves.

Bob Sinche, head of global currency strategy at Bank of America in New York, said it "shouldn't come as a tremendous surprise that there has been slower accumulation of foreign holdings of U.S. assets."

He said that in that context, the comments from China did not tell the market anything new. "But what they did do is to reassert to the market that it is difficult to find a reason to get in the way of the dollar's move," he said.

It was the fourth straight day that the dollar has fallen to new lows against the euro.

Dealers said the sharpness of the dollar's rebound after the denial by the Chinese banker caused some speculation that authorities were intervening in the market.

Bank of America's Sinche said there was no sign U.S. policymakers were worried about the dollar's decline. But even a solo intervention by the European Central Bank could have some effect.

"Because the euro's strength is not about cyclical economic strength in Europe but rather about official flows, action by authorities does take on some meaning because a lot of what has been happening is psychological," he said.

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With that in mind, dealers said they were awaiting a speech by ECB President Jean-Claude Trichet in Rio de Janeiro later Friday.

Treasuries, still stunned by the China rumor, backed off.

The benchmark 10-year note lost 11/32 of a point to 100-2/32 to yield 4.24 percent, up from 4.20 percent late Wednesday. The 30-year bond fell 19/32 of a point to 107-6/32 to yield 4.88 percent, up from 4.85 percent.

The two-year note shed 1/32 of a point at 99-21/32 to yield 3.05 percent and the five-year note lost 5/32 of a point at 99-12/32 to yield 3.64 percent. Bond prices and yields move in opposite directions.

Bond markets were closed Thursday due to the Thanksgiving holiday.  

-- from staff and wire reports