The U.S. dollar strengthened against most major currencies Tuesday as positive U.S. manufacturing data fueled expectations that the Federal Reserve would soon scale back its monetary stimulus.

Economic activity in the U.S. manufacturing sector expanded in August for the third consecutive month, according to the Institute for Supply Management. The Purchasing Managers' Index (PMI) registered 55.7, increasing from July's reading of 55.4.

The data showed the U.S. manufacturing sector grew at its fastest pace in more than two years in August, fueling speculations that the U.S. economy might expand at faster pace in the rest of the year.

Moreover, the U.S. Department of Commerce reported Tuesday that construction spending in July rose 0.6 percent to a seasonally adjusted annual rate of 900.8 billion U.S. dollars, exceeding market consensus.

The dollar also remained strong amid continuous concerns over Syria. U.S. President Barack Obama said he would seek Congress approval on a draft resolution that asks for the authorization of a strike against Syria. The resolution will be debated and voted on in Congress when lawmakers return to session on Sept. 9 from their summer recess.

The euro weakened against the dollar to the lowest level in more than a month, as investors expect the European Central Bank to keep interest rates low to support economic recovery following this week's policy meeting.

In late New York trading, the euro slipped to 1.3169 dollars from 1.3208 dollars of the previous session, and the British pound rose to 1.5563 dollars from 1.5494 dollars. The Australian dollar climbed to 0.9053 dollars from 0.8899 dollars.

The dollar bought 99.47 Japanese yen, higher than 98.17 yen of the previous session. The dollar moved up to 0.9364 Swiss francs from 0.9309, and rose to 1.0536 Canadian dollars from 1.0532.