The U.S. dollar dropped noticeably in late trading on Tuesday as the euro extended gains after European Union (EU) leaders reached a deal on a massive stimulus plan for their coronavirus-battered economies.

The dollar index, which measures the greenback against six major peers, fell 0.75 percent at 95.1175.

The euro jumped after EU leaders clinched an unprecedented recovery deal. Following intense marathon negotiations, leaders of the 27 EU member states on Tuesday morning reached a consensus on the 750-billion-euro coronavirus crisis recovery fund and the bloc's long-term budget worth over 1 trillion euros.

In late New York trading, the euro increased to 1.1530 U.S. dollars from 1.1441 dollars in the previous session, and the British pound was up to 1.2755 dollars from 1.2662 U.S. dollars in the previous session. The Australian dollar was up to 0.7145 U.S. dollar from 0.7011 dollar.

The U.S. dollar bought 106.78 Japanese yen, lower than 107.29 Japanese yen of the previous session. The U.S. dollar was down to 0.9327 Swiss franc from 0.9394 Swiss franc, and it was down to 1.3438 Canadian dollars from 1.3534 Canadian dollars.