U.S. dollar jumps on rate hike concerns

The U.S. dollar rose against other major currencies on Tuesday as investors reassessed the possibility of a September rate hike.

On Monday, the U.S. dollar weakened against most other currencies following dovish comments from Federal Reserve Governor Lael Brainard.

While economic progress continues it would be wise for the Fed to keep monetary policy loose, said Brainard in Chicago on Monday.

However, the impact of Brainard's dovish remarks faded Tuesday as investors reassessed the timing of a next rate hike.

"For the record, Brainard gave similar arguments last year in speeches on November 6 and December 1, shortly before the Fed raised the discount rate," said Jay Morelock, an economist at FTN Financial, in a note.

Meanwhile, investors also kept a close eye on the Fed's September policy meeting. The Federal Open Market Committee, the Fed's monetary policy arm, is set to meet on Sept. 20-21.

The dollar index, which measures the greenback against six major peers, was up 0.56 percent at 95.626 in late trading.

In late New York trading, the euro fell to 1.1207 dollars from 1.1238 dollars in the previous session, and the British pound decreased to 1.3186 dollars from 1.3335 U.S. dollars in the previous session. The Australian dollar dipped to 0.7453 dollar from 0.7561 dollar.

The U.S. dollar bought 102.72 Japanese yen, higher than 101.84 yen of the previous session. The U.S. dollar rose to 0.9778 Swiss franc from 0.9720 Swiss franc, and it moved up to 1.3170 Canadian dollars from 1.3042 Canadian dollars. Enditem