Tensions over the raise of U.S. debt ceiling and European debt crisis concerns reinforced demand on refuges, where the yen was the biggest winner as speculations increased the BoJ will not intervene in foreign exchanged market until the resolve of the U.S. debt ceiling problem.

Today, there will be a vote on the plan proposed by House Speaker John Boehner, which was amended to involve the cut of $917 billion over 10 years. While his proposal was met by prominence from fellow Republicans, it is expected to be rejected by Democrats.

Speculations that U.S. policy makers will fail to reach an agreement before an August 2 deadline are increasing with the undergoing indecision.

On the other hand, European debt concerns were reignited after S&P lowered Greece's credit rating to CC from CCC with negative outlook, which is only two steps above default, where the country is heading towards selective default rating, according to S&P's rating methodology.

The rating agency sees that the second bailout plan approved last week by European officials, which includes the involvement of private sector investors in the aid package and Greek debt restructuring, would end up with losses to commercial creditors.

Following the announcement, the euro fell against majors, especially low-yielding currencies.

In addition, the euro fell further after a report showing that euro area economic confidence fell to 103.2 in July from the revised 105.4 in June.

With regard the euro-dollar pair, it fell for the second day to trade around 1.4283 after recording a high of 1.4400 and a low of 1.4267, where the pair is currently facing strong support at 1.4275.

The trading range for today is among the major support at 1.4125 and the major resistance at 1.4535.

Moving to the British pound versus the yen, it slipped on the daily basis, pushed down by the grim general sentiment which sapped demand on high-yielding currencies.

Meanwhile, the pair is trading at 126.77 after touching a high of 127.39 and a low of 126.69, whereas the trading range for the day is among the major support at 124.00 and the major resistance at 129.00.

Concerning the USD/CHF pair, it continued its downside direction, targeting new record low, where it is currently trading at 0.8000 after falling from a high of 0.8025 to visit the day's low at 0.7987.

The trading range for today is among the major support at 0.8010 and the major resistance at 0.83