Asian session: The euro corrected

The euro erased an earlier drop against the dollar as Greece’s Cabinet backed Papandreou. Papandreou will travel to Cannes, France today to brief German Chancellor Angela Merkel, French President Nicolas Sarkozy, European Central Bank President Mario Draghi and other officials on developments in Greece. Group of 20 leaders will meet in Cannes tomorrow to discuss the debt crisis.

The yen advanced against 14 of its 16 major counterparts as renewed speculation Europe’s debt crisis is worsening boosted appetite for safer assets. The yen extended a gain from yesterday versus the euro on concern Greek Prime Minister George Papandreou’s pledge to put the European Union’s financing package to a referendum risks a disorderly default if voters reject it. Japan’s currency rebounded from declines earlier this week, when the government intervened to weaken it, strengthening today as Asian stocks fell.

The dollar slid against 11 of its 16 major peers as economic reports this week may show the U.S. recovery is faltering, adding to speculation Federal Reserve policy makers will signal their willingness to embark on more asset purchases, or quantitative easing, as they conclude a two-day meeting today.

EUR/USD: on Asian session the pair grows after yesterday's falling.

GBP/USD: on Asian session the pair advanced.

USD/JPY: on Asian session the pair receded from yesterday’s high.