The dollar held near a two-month peak on expectations of Fed rate increase

LONDON, May 25 (Reuters) - The dollar peaked two months against a basket of major currencies on Wednesday on expectations that the US Fed raising interest rates in the coming months.

However, the euro held typed advantage and rose against the yen due to the progress in the negotiation of Greece's rescue plan. Eurozone finance ministers on Wednesday morning gave the go-ahead for the allocation of Athens 10.3 billion euros ($ 11.48 billion) in approval of painful fiscal reforms, advanced the left coalition of Prime Minister Alexis Tsipras.

The dollar index to 14.53 GMT was trading at 95.504, after rising to 95.661 earlier in the Asian session - the peak of the end of March, as the data on Tuesday showed that sales of new homes in the US rose by 16.6 percent in April on a monthly basis and totaled 0.619 million units.

The euro traded near $ 1.1148, holding above the 10-week low of $ 1.1133 reached on Tuesday.

The euro the yen rose 0.2 percent to 122.77 against the background of a rally in the southern European gosbondov links to news from Greece.

"Greek debt problem was not the main concern, but its resolution was a relief, and the euro gets support from this"- said Niels Christensen of Nordea.

Strong sales data for homes in the US in April was supported by reports of the Fed meeting, released last week and indicated the possibility of imminent rate hikes if the economy will be fairly stable.

Head of the regulator Janet Yellen will speak on Friday - the final day G7 summit in Japan. After that, the markets will focus on whether Tokyo will want to delay the planned increase in sales tax and implement the fiscal stimulus measures.

($ 1 = 0.8972 euros)