The Japanese currency strengthened against majors with the fall in European stocks and on speculations the Bank of Japan will not intervene in controlling exchange rate and will leave the yen to advance further.

With regard the pound, it pared its earlier losses after resting on support at 1.5497 against the dollar which lifted the royal pair to 1.5637 while recording a high of 1.5669.

The Sterling bounced after the release of BoE minutes as of 08:30 GMT which showed that August's decision witnessed a vote of 8-1 for both interest rate and APF quantity as policy maker Andrew Sentance insisted on raising borrowing cost to 0.75% claiming that the economic conditions have improved significantly and inflation outlook has been changed which require a gradual hike in interest rate.

The royal pair is expected to move between support at 1.5530 and resistance at 1.5710 for the rest of the day.

On the other hand the dollar is showing slight decline versus a basket of major currencies as depicted by the six-currency gauge, the dollar index, which dropped to 82.10 from a high of 82.50 in the absence of economic fundamentals from the United States.

The euro-dollar inched down to 1.2875 from a high of 1.2908. The euro advanced after report released today which showed that construction output spiked to the highest level in three months in June, yet the Greek/German bond yield settled at its current high level, where sovereign debt fears still persist in markets.

For the rest of the day, the pair is expected to swing between support and resistance at 1.2830 and 1.2950 respectively.

Concerning the dollar-yen pair, it declined slightly where it remained at the same trading levels recorded last week. The yen is hovering near 15-year high against the dollar on concerns with regard global recovery. So far, the pair is trading at 85.30, reporting a high of 85.68 and a low of 85.15, whereas support is seen at 84.90 while resistance is at 85.70.