The dollar index, which measures the greenback against six major peers, rose 0.45 percent to 102.3056 in late trading.
The U.S. Commerce Department reported on Tuesday that construction spending rose 0.5 percent in June from the previous month. Data for May was revised higher to show construction spending surging 1.1 percent instead of 0.9 percent.
In June, construction spending showed a year-on-year growth of 3.5 percent. Private construction projects saw a 0.5 percent increase in spending, with investment in residential construction rising 0.9 percent.
The Institute for Supply Management said on Tuesday that its manufacturing purchasing managers' index (PMI) edged up to 46.4 last month from 46.0 in June, which was the lowest reading since May 2020.
U.S. Treasury yields rose after the two reports, with the 10-year note topping 4.0 percent and approaching the peak observed last month, boosting the greenback.
Meanwhile, the number of job openings for June stood at 9.58 million, according to figures released by the U.S. Bureau of Labor Statistics on Tuesday, which was slightly below the market expectation of 9.62 million.
"A variety of economic data show the U.S. economy was cruising in the second quarter. The pace of the current slowdown may be too gradual for many policymakers at the Federal Reserve, as job openings are only gradually declining, but workers have much to celebrate and still possess substantial leverage," said Nick Bunker, head of economic research at the Indeed Hiring Lab.
In late New York trading, the euro fell to 1.0974 U.S. dollars from 1.0999 dollars in the previous session, and the British pound was down to 1.2772 U.S. dollars from 1.2837 dollars.
The U.S. dollar bought 143.3900 Japanese yen, higher than 142.2640 Japanese yen of the previous session. The U.S. dollar rose to 0.8755 Swiss francs from 0.8718 Swiss francs, and it added to 1.3291 Canadian dollars from 1.3176 Canadian dollars. The U.S. dollar increased to 10.6123 Swedish krona from 10.5112 Swedish krona.
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