The dollar rose against most major currencies Wednesday after Congress approved a budget deal, avoiding a series of tax increases and government spending cuts.
Traders have been concerned that a deal would not be reached, possibly sending the U.S. economy back into a recession.
The euro fell to $1.3178 in late trading Wednesday from $1.3192 late Tuesday.
Also helping boost the dollar were signs of an improving manufacturing sector. The Institute for Supply Management said Wednesday that its index of manufacturing rose in December to 50.7 from 49.5 in November.
The dollar rose to 87.14 Japanese yen from 86.76 Japanese yen, to 0.9185 Swiss franc from 0.9163 Swiss franc and to 98.58 Canadian cents from 99.28 Canadian cents.
The British pound rose to $1.6251 from $1.6243.