The dollar strengthened further against its peers today on thin volume with no significant data released out of the US as the greenback maintained its support by chances of a forthcoming interest rate increase by the Federal Reserve.  Fed officials indicated last night a rate increase is still planned for some point this year.  Fed Chair Janet Yellen is due to speak later this week and the market expects further insight into the central bank’s decision last week to keep its key rate on hold.  The US dollar index was up 0.40% trading at 96.42 setting a 2 week high.  

The euro weakened against the dollar with the pair down 0.46% trading at 1.1139 off its session low of 1.1113 after having come off its session high of 1.1207.  The euro was pressured to 2 week lows against the greenback as US interest rate expectations supported dollar demand as policy outlook between the Fed and the European Central Bank continue to diverge.  The ECB has reconfirmed its readiness to ramp up its stimulus program.  

The pound weakened against the dollar with the pair down 0.90% trading at 1.5369 off its session low of 1.5340 after having come off its session high of 1.5528.  The pound grew vulnerable following the release of data from the UK Office for National Statistics which revealed that public borrowing increased to 12.1 billion pounds from 10.7 billion in August from the same period a year earlier.  The data highlighted its largest budget deficit for the month of August since 2012 having surpassed analysts’ expectations of 9.0 billion pounds.  

The yen strengthened against the dollar with the pair down 0.50% trading at 119.95 off its session low of 119.69 after having come off its session high of 120.60 reached earlier in the day.  Trading volume remained thin as Japanese markets were closed for the second day of Silver Week.    

The Australian and New Zealand dollars weakened against the greenback.  The Aussie lost 0.9% against the dollar with the pair trading at 0.7066 off its session low of 0.7056 after having come off its session high of 0.7158 reached earlier in the day.  The kiwi dollar dropped 0.63% against the greenback with the pair trading at 0.6279 off its session low of 0.6271 after having come off its session high of 0.6332 reached earlier in the day.  The Aussie had gained ground on the back of data released by the Australian Bureau of Statistics which revealed that its house price index rose 4.7% in the 2nd quarter following a 1.6% increase in the 1st quarter ahead of forecasts for a 2.5% increase.  

The Canadian dollar weakened against the greenback with the pair up 0.31% trading at 1.3291 off its session high of 1.3297 after having come off its session low of 1.3218 reached earlier in the day.  The loonie was not successful in capitalizing on recovery in oil prices.  Canadian economic growth at an annualized rate is expected to be behind the Bank of Canada?s forecast of 2% for the latter half of 2015.   

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