The dollar resumed its rally against majors with the improvement seen in the United States after the better-than-estimated jobless claims and housing data released this week and rising tension between South Korea and North Korea.
The escalation between the two Koreas enhanced demand on refuges such as dollar, yen and Swiss franc. Also, the shaky fiscal situation in the euro zone is raising concerns and reducing investor's risk appetite.
Although Ireland had approved taking a bailout from the EU and IMF, fiscal woes did not end as speculations are growing that Portugal is currently facing pressure to get a similar aid package before the problem worsens.
Spain, on the other hand, may follow Portugal as it is also suffering from high debt and five of its banks failed to pass Banks stress test applied in July.
The embracing situation is weighing sharply on the euro causing it to drop to two-month low against the dollar.
The dollar index, which tracks the dollar movements versus a basket of major currencies, is currently trading near the day's opening level at 80.34 after reaching a high of 80.51 and a low of 79.66.
Concerning the euro-dollar pair, it fell today after closing yesterday below strong resistance at 1.3360 which pushed the pair down to 1.3243, where it is currently trading while the highest point was touched at 1.3361 and the lowest was at 1.3199.
The trading range for today is among the key support at 1.3200 and the key resistance at 1.3590.
Moving to the royal pair, it continued its downfall as the breach of 1.5875 paved the way for further decline this week in the absence of economic fundamentals from the UK today.
The pair is currently trading at 1.5623 after reaching a high of 1.5770 and a low of 1.5608, while the trading range for today is among the key support at 1.5645 and the key resistance at 1.5965.
With regard to the dollar-yen pair, it advanced for the third day yet a closing above 83.80 may help the dollar to continue its rebound against the yen after falling to 15-year low last month.
Currently, the pair is trading at 84.05, reaching a high of 84.18 a low of 83.54, while the trading range for today is among the key support at 82.80 and the key resistance at 85.00.