The greenback rose to an almost one-and-a-half-week high Tuesday even as services sector data slowed to a five-month low in January.
The Institute of Supply Management said its non-manufacturing purchasing managers’ index (PMI) fell to 56.7 from 58.0 in December, as worry over the impact of the government shutdown weighed on businesses.
But Friday’s upbeat jobs numbers, along with ISM manufacturing data, helped ease concerns of a slowing economy.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, increased 0.23% to 95.79 as of 10:58 AM ET (15:58 GMT).
The dollar was flat against the safe-haven yen, with USD/JPY at 109.87.
Elsewhere, the pound was under pressure after the UK’s PMI index fell to its lowest level since July 2016 as Brexit nears. GBP/USD slumped 0.72% to 1.2939.
The euro was also down, with EUR/USD falling 0.22% to 1.1408.
In Australia, the AUD/USD pulled back from earlier highs, rising 0.19% to 0.7238. On Tuesday the Reserve Bank of Australia’s kept rates on hold, while cutting its growth outlook. NZD/USD increased 0.16% to 0.6893.
Meanwhile the loonie was lower, with USD/CAD up 0.12% to 1.3124.
