On Tuesday the dollar moved lower against the euro and the yen, as
uncertainty over the possibility of a rate hike by the Federal Reserve grew 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, before consolidating at 1.1184, higher 0.13%.
Sentiment on the greenback remained fragile after Friday's U.S. jobs report failed to provide sufficient clarity on when the Fed will decide to increase 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 signaled last week that it could expand its quantitative easing program amid increased risk to the region’s inflation outlook from slowing growth in China and falling oil prices.
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.
Overnight, data from China showed imports in August fell 13.8% in dollar terms from a year earlier, larger than the 8.1% decrease in July. Exports fell 5.5%, according to the General Administration of Customs.
USD/JPY changed hands at 120.03, higher 0.63%.
The pound sterling surged against the greenback with GBP/USD trading at 1.5360, higher 0.54%.
U.K. stocks moved higher Tuesday, as the insurance sector was lifted by deal making and as investors took disappointing Chinese trade data in their stride.
The FTSE 100 rose 1.1% to 6,143.19. All sectors posted gains, with financials leading the way.
