The U.S. dollar rose to session highs against the dollar on Monday after data showed that Canadian building permits fell more than expected in August, but concerns about U.S. political gridlock failure had dollar.
USD/CAD hit 1.0334 in the U.S. session Earlier, the session high, then stabilized at 1.0322, gaining 0.26%.
The pair was likely to find support at 1.0274, the low of September 30 and resistance at 1.0355, the high of October 2.
The dollar hit a session low of Canada after Statistics Canada said the total value of building permits issued in Canada declined from 21.1 % in August, following an upwardly revised increase of 21.4 % in July.
Analysts had expected building permits are expected to decline by 7 %.
The dollar remained under pressure while closing the U.S. government entered a second week with little sign of progress toward a resolution, fueling fears about the risk of a possible default of the U.S. debt.
Republican House Speaker John Boehner said on Sunday the house will not support bills to fully open the government or increasing the government's borrowing limit unless the Obama administration agrees to negotiations to reduce the deficit.
The comments have fueled fears that political gridlock in Washington will not be resolved before October 17, the date on which the Treasury Department has estimated that the U.S. could be at risk of an unprecedented default.
The dollar, the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.39 % to 1.4007.
In the euro area, data released Monday showed the economy grew 0.3 % in the second quarter, unchanged from a preliminary estimate and in line with expectations.