NEW YORK (CNN/Money) - The dollar fell against the euro on Tuesday but still held above record lows reached after remarks by European Central Bank chief Jean-Claude Trichet suggested the ECB was unlikely to intervene to stem the euro's rise.

The euro pushed up to $1.3334, above the $1.3329 milestone set last week, before easing to $1.3288. Against the yen, the dollar rose to ¥102.96 from ¥102.85 late Monday, holding above a 4-1/2 year low of ¥102.12 reached last week.

In answer to questions after a briefing to the European Parliament, Trichet reiterated that recent moves in the euro were not welcome but also expressed his confidence that the United States would take action to reduce the deficits which have been hurting dollar sentiment.

"There is ... no sign yet that the ECB is even contemplating unilateral intervention on the euro," Sean Callow, currency strategist with IDEAGlobal in New York, told Reuters.

The ECB's stance on monetary policy -- that continued vigilance was needed to guard against inflation -- also was underpinning the euro, analysts said.

The message was that "the next (rate) move will be up, not down, even if this may take some time to materialize," said Callow.

In the bond market, Treasury prices trimmed some earlier losses, in part under pressure from positive news on the economy, with yields reaching four-month peaks for a second straight session.

The 10-year note lost 4/32 of a point at 99-8/32 to yield 4.34 percent, up slightly from 4.33 percent late Monday. The 30-year bond fell 16/32 of a point to 105-14/32 to yield 5.00 percent, up from 4.97 on Monday. Bond prices and yields move in opposite directions.

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The two-year note gained 3/32 of a point at 99-24/32 to yield 3.01 percent, while the five-year note rose a tick to 99-4/32, with a yield of 3.69 percent.

Data released on Tuesday morning showed the Chicago purchasing management index of business activity pulled back in November but remained at a still-strong level. Also, gross domestic product data showed the U.S. economy expanded at a slightly faster pace than first thought in the third quarter, though inflation remained subdued.

In contrast, the Conference Board's measure of consumer confidence declined to 90.5 in November from 92.8 in October, surprising analysts who had looked for a rise to 96.5.  

-- from staff and wire reports