The dollar index, which measures the greenback against six major peers, fell 0.46 percent at 96.7291.
In late New York trading, the euro increased to 1.1314 U.S. dollars from 1.1244 dollars in the previous session, and the British pound rose to 1.2498 dollars from 1.2476 U.S. dollars in the previous session. The Australian dollar rose to 0.6975 U.S. dollar from 0.6942 dollar.
The U.S. dollar bought 107.28 Japanese yen, lower than 107.47 Japanese yen of the previous session. The U.S. dollar fell to 0.9413 Swiss franc from 0.9448 Swiss franc, and it decreased to 1.3541 Canadian dollars from 1.3553 Canadian dollars.
Economic activity in the U.S. non-manufacturing sector grew in June after two consecutive months of contraction, the Institute for Supply Management (ISM) reported on Monday.
The ISM non-manufacturing index registered 57.1 percent, 11.7 percentage points higher than the May reading of 45.4 percent, showed the report. The reading topped the 51 percent forecast of economists polled by MarketWatch.
Latest comments