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Dollar mixed amid uncertainty over Fed rate hike

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The dollar traded mixed on Tuesday amid uncertainty about the timing of the Federal Reserve's first interest rate increase in more than nine years.

[NEW YORK] The dollar traded mixed on 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 on 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 per cent probability that the US Federal Open Market Committee will vote to increase rates in two weeks' time - down notably from the 65 per cent 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 per cent quarter on quarter, from 0.3 per cent.

AFP

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