The U.S. dollar index increased against most other major currencies in late trading on Tuesday, as investors meditated on Italy's political situation amid economic data.

With an assertive move to put a temporary end to an 85-day-long stalemate, Italian President Sergio Mattarella on Monday named economist Carlo Cottarelli as Italy's new prime minister-designate.

Cottarelli was asked to form a technical cabinet able to lead the country to snap elections -- either in late 2018 or early 2019 -- after the efforts by anti-establishment Five Star Movement (M5S) and rightwing League to form a government failed on Sunday.

The U.S. dollar rose to a 10-month high against the euro on Tuesday after a sell-off in Italy's debt market drove investors to dump the single currency.

On the economic front, the Conference Board Consumer Confidence Index increased in May, following a modest decline in April after a downward revision. The index now stands at 128.0, up from 125.6 in April.

The index measures U.S. sentiment on current economic conditions and expectations for the next six months.

Consumer spending accounts for about 70 percent of U.S. economic activity, drawing economists' attention to the numbers.

The dollar index, which measures the greenback against six major peers, increased 0.46 percent at 94.848 in late trading.

In late New York trading, the euro decreased to 1.1533 dollars from 1.1628 dollars in the previous session, and the British pound fell to 1.3247 dollars from 1.3314 U.S. dollars in the previous session. The Australian dollar was down to 0.7502 dollar from 0.7544 dollar.

The U.S. dollar bought 108.22 Japanese yen, lower than 109.39 Japanese yen of the previous session. The U.S. dollar dipped to 0.9883 Swiss franc from 0.9936 Swiss franc, and it increased to 1.3021 Canadian dollars from 1.3002 Canadian dollars.