A Bloomberg gauge of the U.S. dollar gave back gains that emerged after a U.S. strike on Venezuela and the capture of Maduro. It trended lower during the New York trading session, weighed down by a weaker-than-expected ISM manufacturing index.
The Bloomberg Dollar Index fell 0.1%, with the ISM report triggering the decline.
ISM data indicated that U.S. manufacturing activity contracted in December at its fastest pace since 2024.
Earlier, the Bloomberg Dollar Index had climbed as much as 0.4% to a two-week high as investors assessed the implications of the U.S. strike on Venezuela, including its effects on oil and metals markets.
"The dollar's trajectory will hinge on the 'success' of this mission," said Thierry Wizman, Global FX and Rates Strategist at Macquarie. "Historically, dollar strength has often accompanied successful U.S. operations abroad."
EUR/USD rose less than 0.1% to 1.1727, reversing an earlier decline after the pair had touched its weakest level since December 11.
The yen outperformed, with USD/JPY falling 0.4% to 156.19.
USD/CHF declined 0.1% to 0.7915.
Earlier, data showed Swiss manufacturing activity fell more than expected in December, hitting a seven-month low, which initially put pressure on the Swiss franc.
USD/CAD gained 0.2% to 1.3756.
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