The dollar was mixed against other major currencies Wednesday as oil prices tumbled further and a report from the Federal Reserve showed slower U.S. economic growth and rising prices.

The euro fell to $1.5681 in late New York trading, down from $1.5788 it bought late Tuesday. The British pound rose to $1.9976 from $1.9920, while the dollar inched up to 107.93 Japanese yen compared with 107.21 yen the previous day.

The Fed's latest snapshot of business conditions, referred to as the Beige Book, showed that consumer spending turned worse in the summer despite the government's tax rebate checks.

"The Beige Book was a big factor in dollar trading, but did not express as much downside concern as markets might have expected," Bob Sinche, head of global foreign exchange strategy at Bank of America Corp. "The markets will now look towards reports in the coming days and weeks that may show a significant weakening in the euro zone economy."

The drooping value of the dollar, which makes U.S.-made goods and services cheaper and more attractive to foreign buyers, has helped boost export growth, according to the Fed report. That export growth has been a key force keeping the economy afloat.

The report underscored worries that the country may be headed for a bout of stagflation, but Federal Reserve Chairman Ben Bernanke has said that he doesn't believe the economy will suffer from the toxic combination of stagnant growth and stubborn inflation not seen in decades.

For now, many economists predict the Fed will probably leave a key interest rate alone when it meets next on Aug. 5. Higher interest rates can attract investors to a currency as they seek higher returns on investments.

Meanwhile, oil prices fell $3.98 to settle at $124.44 a barrel on the New York Mercantile Exchange Wednesday. Oil is down more than $20 since hitting a record above $147 just weeks ago.

A weaker dollar has been a major factor driving oil prices sharply higher in recent months, enticing investors to pump money into oil as a hedge against inflation and making crude cheaper for overseas buyers.

In other late trading, the dollar inched up to 1.0107 Canadian dollars from 1.0084 Canadian dollars, and rose to 1.0390 Swiss francs from 1.0305 francs.

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