New York, Apr 3 (IANS): The US dollar increased amid a weaker euro, as latest data showed the euro zone suffered sharp contraction in manufacturing sector, raising concerns over a slowdown in the region's economy.

In late New York trading on Tuesday, the euro decreased to $1.1198 from $1.1211 in the previous session, and the British pound was down to $1.3114 from $1.3125 in the previous session, Xinhua news agency reported.

The Australian dollar decreased to $0.7063 from $0.7112.

The US dollar bought 111.38 Japanese yen, higher than 111.36 Japanese yen of the previous session. The US dollar fell to 0.9984 Swiss franc from 0.9989 Swiss franc, and it was up to 1.3346 Canadian dollars from 1.3310 Canadian dollars.

The IHS Markit Eurozone Manufacturing Purchasing Managers' Index (PMI) posted a level of 47.5 in March, down from 49.3 in February, marking its lowest level since April 2013, according to the PMI data released Monday by IHS Markit, a London-based global information provider.

The grim data indicated that manufacturing operating conditions in the euro zone deteriorated last month to the greatest degree for nearly six years.

The dollar index, which measures the greenback against six major peers, increased 0.12 per cent at 97.3597 in late trading.