The dollar clawed back some losses against the Japanese yen and also added to its advance on the euro in European trade Tuesday, as recent weakness in oil prices curbed some U.S. trade deficit worries. The dollar was trading at 110.81 yen, up from 110.16 late Monday, and the euro was at $1.2271, vs. $1.2292 late Monday. Crude oil futures recently were trading at $63.30 a barrel after breaking $70 a barrel in the wake of Hurricane Katrina. The euro also came under pressure amid continued concern about the German election on the prospect of a "Grand Coalition" between the parties of incumbent Chancellor Gerhard Schroeder and his main rival, Angela Merkel. Traders fear that a coalition government wouldn't be able to push through much in the way of economic reforms. The Norwegian krone also came under pressure, losing ground against the euro after the election of a left-leaning government in the closely-contested election. The incoming government of the world's third-largest oil exporter, to be led by Jens Stoltenberg, is looking to increase government spending. The U.S. economic calendar was of interest Tuesday, with July trade gap and August producer price index data on tap. Economists polled by MarketWatch see the trade gap widening to $59.5 billion from $58.8 billion, and the producer price index falling to 0.7% from 1%. Core PPI is seen falling to 0.1% from 0.4%.