NEW YORK (AFX) - The dollar remained under pressure against the euro, yen and other major currencies in mid-afternoon trade, pulled back by a volatile equity market after yesterday's strong gains, dealers said. The euro remained stubbornly above the 0.97 usd level, even after the DJIA reversed early losses to trade up more than a 100 points in afternoon trade. Citigroup analyst Robert Sinche said the dollar's strength in recent sessions was mainly driven by position squaring and hopes of an interest rate cut next week. "However, we remain concerned that the lack of capital inflows will create new downward pressure on the dollar during the months ahead," said Sinche. "In addition, but by a narrow margin our US economics team believes that the Fed will remain on hold, suggesting renewed risk for the dollar during the weeks ahead." Earlier, the euro shrugged off weak German manufacturing orders, showing a seasonally adjusted 3.2 pct decline in June from May, compared with expectations of a fall of just 1.5 pct. There was further gloom in July unemployment data, with the jobless total showing a seasonally adjusted rise of 8,000 to 4.105 mln, giving an unemployment rate of 9.9 pct. While the unemployment figures are not as bad as expected -- market consensus was for a rise of 30,000 -- the fact that they continue to show an increase was viewed as negative, said dealers. "Seasonal adjusted unemployment of 4.1 mln is the highest level since September 1999," said Sinche. "Economic weakness is clearly spreading to the euro area's largest economy, and eur/usd gains remain a function of weak capital inflows into the US weakening the USD, not from strong capital inflows into long-term euro area assets."