Tensions over the raise of U.S. debt ceiling intensified with the discrepancy among U.S. policy makers, thereby enhancing demand on refuges.
U.S. President Obama warned that he will use the veto if the Congress approved Speaker John Boehner two-step plan to raise the debt ceiling and cut government expenditure by $3 trillion.
As U.S. policy makers continue to fail to reach an agreement over increasing debt limit before August, a downgrade by rating agencies to the U.S.'s top rating is possible. Also, the threat of default is on the horizon due the large budget deficit that coincides with sluggish growth pace.
Under the accord, the jittery situation provoked the rush to safe havens led by Japanese yen, Swiss franc and dollar respectively at the expense of risky assets, especially shares.
The dollar index managed to do a slight rebound before the release of durable goods report, yet it remained trading at record low versus the franc and four-month low versus the yen.
The dollar index, which tracks the dollar movement versus a basket of major currencies, is currently hovering around the lowest since May at 73.67 compared with the day's opening level of 73.52.
Concerning to the dollar-yen pair, it is showing slight decline on the daily basis, where the pair is hovering around 77.82 while it opened the day at 77.88, whilst the high was recorded at 78.01 and low is at 77.55.
The trading range for today is among key support at 76.75 and key resistance now at 79.55.
Still, there are expectations that the BoJ would intervene to prevent the yen from depreciating further as the Japanese economy is still weak and will not be able to bare further appreciation for the yen.
With regard the euro-franc pair, it dropped on the daily basis where the pair is currently trading at 1.1583 after recording a high of 1.1645 and a low of 1.1568.
The euro fell after German Finance Minister said Germany opposed a blank check for the euro-zone aid fund to buy bonds on the secondary market.
Moving to the British pound versus the dollar, it slipped to pare some of yesterday's gain, where the grim general sentiment pushed the pair to the downside to trade at 1.6360.
So far, the pair has recorded a high of 1.6438 and a low of 1.6354, whereas the trading range for today is among key support at 1.6190 and key resistance at 1.6620.