The U.S. dollar rose against the other major currencies on Tuesday on U.S. strong manufacturing data.

The Institute of Supply Management (ISM) said its index of U.S. factory activity increased to 54.8 in April, 1.4 points up from the level a month earlier. It topped analysts' expectation of 53.0. Reading above 50 indicates expansion, while reading below 50 means contraction.

But the trading was volatile on thin volume as the investors remained cautious. The markets expected that light volume would linger before Thursday's European Central Bank meeting and Friday' s U.S. non-farm payrolls report.

In late Tuesday trading, the euro declined to 1.3228 dollars from 1.3243 dollars. The dollar bought 80.21 Japanese yen, higher than 79.81 in the previous session, and gained to 0.9079 Swiss francs from 0.9073. The British pound fell to 1.6220 dollars from 1.6232.

The dollar fell to 0.9852 Canadian dollars from 0.9873.