Asian session: The dollar fell against most of its 16 major counterparts

The euro touched a five-week low versus the yen and dollar amid bets the European Central Bank will have to buy more European government debt as confidence wanes in the region’s ability to deal with its debt crisis. The 17-nation currency dropped below $1.35 for a second day as Fitch Ratings said U.S. banks face a “serious risk” to their creditworthiness if the European crisis worsens. Spain will auction up to 4 billion euros ($5.4 billion) of bonds tomorrow, the same day France will sell as much as 8.2 billion euros of debt.

The dollar fell against most of its 16 major counterparts before Federal Reserve Bank of New York President William Dudley speaks today amid speculation the U.S. recovery isn’t fast enough to deter further monetary easing.

The Dollar Index slid from a five-week high before government data today expected to show that the number of Americans filing for unemployment benefits rose last week from a seven-month low.

The Australian  dollar touched the lowest levels in at least a month on concern the global economy will slow as European leaders struggle to stem the region’s debt crisis. Demand for the South Pacific currencies was limited before Spain and France auction debt today after yields on euro-area bonds soared. New Zealand’s dollar touched a six-week low against the greenback and yen after data showed producer input prices grew at the slowest pace in almost two years.

EUR/USD: on Asian session the pair gain.

GBP/USD: on Asian session the pair advanced.

USD/JPY: on Asian session  the pair fell.

A fairly thin calendar of scheduled events in Europe starts at 0800GMT when German Finance Minister Wolfgang Schaeuble delivers a

speech at a insurance industry conference, in Berlin. At 1000GMT, German Chancellor Angela Merkel delivers a speech at the Sueddeutsche Zeitung conference in Berlin. EMU data at 1000GMT sees just EMU construction output for September. US data starts at 1330GMT with the weekly Jobless Claims as well as October's Housing Starts & Building Permits. Initial jobless claims are expected to rise 5,000 to 395,000 in the November 12 employment survey week after falling to 390,000 in the previous week. At 1730GMT, Cleveland Fed President Sandra Pianalto is due to deliver a speech on the economic outlook to Rotary Club of Lexington, while at 1750GMT, New York Fed President William Dudley delivers a speech on the economic outlook at policy at West Point.