The dollar index, which measures the greenback against six major peers, decreased 0.12 percent at 97.7379 in late trading.
In late New York trading, the euro was up to 1.1081 dollars from 1.1076 dollars in the previous session, and the British pound was up to 1.2992 dollars from 1.2942 U.S. dollars in the previous session. The Australian dollar rose to 0.6841 dollar from 0.6820 dollar.
The U.S. dollar bought 108.57 Japanese yen, lower than 108.96 Japanese yen of the previous session. The U.S. dollar fell to 0.9867 Swiss franc from 0.9914 Swiss franc, and it was up to 1.3300 Canadian dollars from 1.3297 Canadian dollars.
Market participants continued to digest the disappointing U.S. manufacturing data.
U.S. manufacturing purchasing managers' index fell to 48.1 percent in November from the October reading of 48.3 percent amid weak inventories and new orders data, according to the Institute for Supply Management on Monday.
Economists surveyed by MarketWatch had forecast the index would register a reading of 49.2 percent. A reading below 50 percent represents contraction.
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