Investing.com - The dollar rose against its rivals Wednesday, shrugging off soft housing market data ahead of the release of the Federal Reserve's September minutes.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.34% to 95.09.
The Commerce Department said Wednesday U.S. homebuilding fell 5.3% to a seasonally adjusted annual rate of 1.201 million units in September, below economists' estimates of 1.220 million units.
The report also highlighted a sharp 0.6% fall in building permits to a rate of 1.241 million units, missing forecasts for a 2.1% increase.
The duo of bearish reports on housing activity added to what has been a streak of disappointing data for the housing sector at a time when many fear rising interest rates may dent home buying activity.
The release of the minutes from the Federal Reserve's September meeting, slated for 2.00 p.m., is expected to be closely parsed for clues on monetary policy in the wake of continued criticism from President Donald Trump.
Trump on Tuesday reiterated his criticism of the Fed's plans to continue with gradual rate hikes, saying the Fed was his "biggest threat" because it was raising rates too fast.
The dollar's charge higher was also supported by a weakness in both the pound and euro.
GBP/USD fell 0.35% to $1.3138 as inflation data missed economists' forecasts, while Brexit-related angst also weighed amid the EU summit this week.
EUR/USD lost 0.35% to $1.1534 on reports that the EU Commission had rejected Italy's latest budget submission.
Italy's plan to stick with its proposed 2019 budget deficit at 2.4% of GDP is expected to face backlash from policymakers in Brussels, raising tensions in the bloc.
USD/JPY fell 0.01% to Y112.25 as improving risk sentiment dented demand for safe-haven yen after Wall Street pared some of its earlier losses.
USD/CAD rose 0.45% to C$1.2992 as the loonie was pressured by a plunge in oil prices after data showed a larger-than-expected build in U.S. oil supplies.