The dollar rose against the yen on Tuesday as traders covered short positions and took profits ahead of year-end.

The U.S. currency edged lower against the euro as a Commerce Department report showed that construction of new homes dropped to the lowest level in more than 16 years.

The reports reinforced concerns that the U.S. economy could be pushed into a full-blown recession.

Volumes were thin as investors scaled back their activity going into the end of the year, leading to jittery trading heavily influenced by technical factors and flows, traders said.

In late New York trading, the euro bought 1.4408 dollars, up slightly from 1.4398 dollars on Monday.

The British pound drifted lower to 2.0133 dollars from 2.0213 dollars, while the dollar edged higher to 113.31 Japanese yen from113.02 yen.

The U.S. currency rose to 1.1522 Swiss francs from 1.1503 francs and slipped to 1.0054 Canadian dollars from 1.0064 Monday.