Investing.com - The dollar moved lower against the euro and the yen on Tuesday, as uncertainty over the timing of a rate hike by the Federal Reserve mounted ahead of the central bank's policy meeting scheduled next week.
EUR/USD gained 0.42% to trade at 1.1218, the highest level since September 3.
Sentiment on the greenback remained vulnerable after Friday's U.S. jobs report failed to provide much clarity on when the Fed will decide to raise short term interest rates.
The Labor Department reported that the U.S. economy added 173,000 jobs last month, the smallest increase in employment in five months and was below expectations for 220,000, while the unemployment rate ticked down to 5.1%, its lowest level since April 2008.
Meanwhile, the single currency remained supported after the European Central Bank indicated last week that it could scale up its quantitative easing program amid increased risk to the region’s inflation outlook from slowing growth in China and falling oil prices.
USD/JPY added 0.13% to 119.43.
Earlier Tuesday, data showed that Japan's second quarter gross domestic product fell 0.3%, less than the 0.4% expected drop.
A separate report showed that Japan's current account for July came in at a surplus of ¥1.809 trillion, above the expected surplus of ¥1.715 trillion.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.38% at 95.77, the lowest level since September 4.