Investors may sift through the minutes for more clues on the outlook for US interest rates after data yesterday showed inflation remains below target, even as the housing market gathers steam.
On Tuesday, the currency rose as strong US housing data bolstered expectations for an earlier-than-expected rate hike by the Federal Reserve.
The report said housing starts jumped 15.7% to an annual rate of 1.093 million in July after falling 4% to a revised 945,000 in June. Economists had been expecting housing starts to climb to a rate of 963,000 from the 893,000 originally reported for the previous month.
The US dollar rose to a 9-month high of 1.3302 against the euro, from an early low of 1.3323. If the greenback extends its uptrend, it is likely to find resistance around the 1.32 area.
Against the yen and the pound, the greenback advanced to 4-1/2-month highs of 103.22 and 1.6602 from early lows of 102.88 and 1.6623, respectively. The greenback may test resistance near 103.40 against the yen and 1.65 against the pound.
Moving away from an early low of 0.9089 against the Swiss franc, the greenback rallied to a 2-week high of 0.9105. On the upside, 0.911 is seen as next resistance level for the greenback.
Looking ahead, German producer price index for July is due in the European session.
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