NEW YORK: The US dollar rose slightly in late trading on Monday with improving risk appetite following the announcement of the US debt ceiling deal, reported Xinhua.

The dollar index, which measures the greenback against six major peers, rose 0.06 per cent at 104.2663 in late trading.

The White House and House Republicans inked a deal on the federal government debt ceiling on the weekend, lending support to the US dollar in contrast with the euro.

The narrowing of US credit default swaps (CDS) over the short term indicates reduced concerns about a US debt default, which could strengthen the U.S. dollar and exert downward pressure on the exchange rate of euro against the US dollar, said James Hyerczyk, senior market analyst with market information supplier FX Empire.

Still, the US dollar weakened against most of the other major currencies as risk appetite improved.

The thin trading during the US Memorial Day holiday led to the narrow fluctuation of major pairs of foreign exchange rates on Monday.

In late New York trading, the euro was down to US$1.0709 from US$1.0730 in the previous session, and the British pound increased to US$1.2357 from US$1.2350 in the previous session.

The US dollar bought 140.3940 Japanese yen, lower than 140.6220 Japanese yen of the previous session. The US dollar fell to 0.9041 Swiss francs from 0.9047 Swiss francs, and it fell to 1.3593 Canadian dollars from 1.3615 Canadian dollars. The US dollar rose to 10.8185 Swedish Krona from 10.8130 Swedish Krona.-Bernama