Dollar mixed amid uncertainty over Fed rate hike
Dollar traded mixed amid uncertainty over Federal Reserve's first interest rate increase.
NEW YORK (AFP) - The dollar traded mixed Tuesday amid uncertainty about the timing of the Federal Reserve s first interest rate increase in more than nine years.
A disappointing US jobs report Friday clouded the outlook for a hike by the central bank at its September 16-17 policy meeting.
"Interest rate futures show an implied 30 percent probability that the US Federal Open Market Committee will vote to increase rates in two weeks time -- down notably from the 65 percent chance seen through mid-August," said David Rodriguez at DailyFX.
"The sharp downgrade occurred on substantial financial market volatility, and the US dollar fell as traders exited existing USD-long positions," he said.
The euro firmed as the eurozone s second-quarter economic growth was revised higher, to 0.4 percent quarter on quarter, from 0.3 percent.
