The dollar recovered from its overnight dip in Asian trading Thursday, but its climb was limited by concerns about the U.S. economy, higher oil prices and the devastation from Hurricane Katrina. The dollar bought 110.83 yen in Tokyo midafternoon, down 0.59 yen from late Wednesday but above the 110.70 yen it bought in New York later that day. The euro rose to $1.2338 from $1.2206 late Wednesday. Fears about the economic fallout from Hurricane Katrina, America's deadliest natural disaster in a century, which has ravaged New Orleans and nearby areas, pushed the dollar sharply lower in New York trading. Despite the dollar buying in Asia, traders said the market's demand for dollars was hurt by growing jitters that the hurricane's damage and weak economic data may cause the Federal Reserve to keep rates on hold at its policy-setting meeting Sept. 20. The euro stayed mostly flat from overnight New York levels, where it traded late at $1.2328, as traders were reluctant to make moves ahead of the European Central Bank's policy meeting later in the global session, they said. Concerns over U.S. economic health grew after data released overnight showed the Chicago Purchasing Management Index fell to 49.2 in August, down from 63.5 in July and worse than the consensus forecast of 60.5, traders said. Many players are now focusing on the U.S. ISM manufacturing index for August, due later in the day.