The U.S. dollar fell against the yen on Tuesday after a lower-than-expected June reading for the Institute for Supply Management non-manufacturing sector index.

The dollar was last down 0.1 percent at 87.61 yen JPY= from 87.79 yen prior to the data.

The euro also extended gains versus the dollar and was last trading up 0.7 percent at $1.2615 EUR=, from $1.2580 before the data.

(Reporting by Vivianne Rodrigues; Editing by Chizu Nomiyama)