Tuesday saw a rise in the dollar's value versus a basket of currencies as a flood of recent economic data demonstrated how strong the American economy is in comparison to that of the UK and the EU.

According to S&P Global, U.S. business output increased marginally in October as the manufacturing sector emerged from a five-month contraction on the back of an uptick in new orders and services activity picked up slightly despite signs of lessening inflationary pressures.

It was the most recent indication that the American economy is surviving the rise in interest rates brought on by the Federal Reserve's initiative to fight inflation.

The dollar index that gauges the greenback versus its major pairs ticked up by 0.6% at 106.19. Earlier in the day, the index had fallen to a the lowest level  in one month at 105.35.

The German data was especially depressing. The service industry joined the manufacturing sector in contracting, according to the purchasing managers' index survey.

EUR/USD edged 0.7% lower at $1.05975.

GBP/USD dipped 0.59% at $1.21765. According to polls released on Tuesday, businesses in Britain reported a further drop in activity this month and a slowing of cost pressures. This highlights the potential for a recession.

USD/JPY added 0.1% at 149.875 yen, traders on edge due to potential government action to support the value of the yen.