Dollar Gains as Jobs Report Suggests Possibility of September Rate Hike

US dollar is heading higher today as analysts consider that the latest jobs data could point to a rate hike by the Federal Reserve this month. Speculation that the Fed would put off the rate hike has been rampant, but now it appears that a hike could be coming sooner than expected.

The latest unemployment data from the United States shows that the economy added 173,000 nonfarm jobs in August. The unemployment rate dropped to 5.1 per cent. This news indicates that the jobs situation is still fairly solid, and the economy continues to improve.
Federal Reserve officials have long said that the economy and jobs will help guide policy, and many think that this latest report could mean a rate hike in September. There had been speculation that problems with China and threats of a global economic slowdown would force the Fed to put off a hike until later in 2015 or early 2016, but now it appears that the Fed might be confident enough to hike in September.
At 14:53 GMT the dollar index is up to 96.563 from the open at 96.379. EUR/USD is down to 1.1113 from the open at 1.1123. GBP/USD is down to 1.5192 from the open at 1.5257. USD/JPY is down to 119.2750 from the open at 120.0750.

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