The green currency continued its drop against majors as depicted by the dollar index, which tracks the dollar movements versus a basket of major currencies, which fell to a low of 80.93 from the day's opening at 81.31 in spit of the better-than-estimated housing report.
US housing starts for the month of August showed a rise to 598 thousands compared with the revised reading of 541 thousands and median estimates of 550 thousands.
Yet, the main focus remains on the FOMC two-day meeting starting tonight amid the status of slowdown the world's largest economy is witnessing.
Policy makers, however, will probably keep borrowing cost near zero and announce no changes in the size of stimulus.
By and large, optimism prevailed in markets earlier today after a successful bond selling by Ireland and Spain, which offset the downbeat budget deficit data released by UK and Portugal.
The bond selling managed to ease debt concerns spreading in Europe prompting investors to buy risky assets, thereby, uplifting shares and high-yielding currencies.
Concerning the euro-dollar pair, it is showing advance on the daily and 4-hour charts where it reached a high of 1.3149 after the breach of strong resistance at 1.3117.
The Irish and Spanish bond selling provided hopes that highly indebted economies will not need any help from the EU which helped the euro to rise today.
Now, the pair is trading at 1.3137, while the trading range for today is among the key support at 1.2990 and the key resistance at 1.3260.
Turning to the sterling-dollar pair, it is little changed due to holiday in where the pair is trading close to the day's opening price after dropping earlier to a low of 1.5501 after the increase in the budget deficit to the highest level since at least 1993, thereby, adding to concerns with regard economic recovery.
The report released today showed that deficit reached 15.3 billion pounds in August relative to the revised deficit of 2.0 billion pounds, while the difference between cash in and cash out treasury 5.8 billion pounds compared with the prior revised surplus of 3.7 billion pounds.
Meanwhile, the royal pair is trading at 1.5541 after visiting a high of 1.5585, whereas the trading range for today is among the key support at 1.5475 and the key resistance at 1.5800.
With regard to the dollar-yen pair, it is showing slight decline on the daily charts ahead of the Fed rate decision where the pair is doing downside correction, after the BoJ has intervened for the first time since 2004 in FOREX market through selling yen to weaken the currency last week, as it appears by momentum indicators.
The pair is currently seen trading at 85.32, recording a high of 85.77 and a low of 85.25, while the trading range for today is among the key support at 84.00 and the key resistance at 87.35.