Foreign exchange traders have continued to sell the US dollar for the euro in the wake of last week’s disappointing American jobs report.

Near 0800 AEST on Tuesday, the euro traded at $US1.3254, up from $US1.3180 on Friday.

The US dollar also fell against the Swiss franc and the British pound.

The US dollar advanced to Y99.69 from Y99.07.

The euro rose to Y132.10 from Y130.57.

Last week’s jobs reports “had a dramatic impact on interest rate expectations”, said David Rodriguez, quantitative strategist at DailyFX.

The report showed weaker-than-expected jobs growth in August and revised downward the estimated jobs added in June and July.

Rodriguez said the real test for the US dollar will be next week’s Federal Reserve Open Market Committee meeting, which could begin scaling back the Fed’s aggressive bond-buying program.

Markets are also carefully eyeing developments on Syria and an expected US congressional debate on President Barack Obama’s plan to lead military strikes on the country.

A military strike would likely lead to lower equities, higher oil prices and a higher US dollar, said Kathy Lien, managing director at BK Asset Management.

A military strike could spur a “safe haven bid for the US dollar”, Lien said.

The British pound rose to $US1.5696 from $US1.5627 on Friday.

The US dollar slipped to 0.9325 Swiss franc from 0.9376.