Asian session: the dollar rose against most major peers

The dollar rose against most major peers after North Korean state television said national leader Kim Jong Il died, spurring concern instability may increase in the region and boosting demand for the U.S. currency as a haven.

The yen dropped against the dollar for the first time in three days amid concern a destabilization of the Korean peninsula will dim the outlook for Japan’s economy and security.

The euro slid before France and Spain sell bills this week amid concern the region’s largest economies will have their credit ratings cut.The euro fell for the first time in three days against the dollar before France is scheduled to sell as much as 7 billion euros ($9.1 billion) of bills today. Spain will auction government securities tomorrow maturing in three and six months.

Fitch Ratings lowered its outlook for France’s credit ranking to negative from stable on Dec. 16, saying the country’s budget deficit and government borrowings make it more vulnerable to the region’s debt crisis than other top-rated euro-zone countries. The ratings company separately placed other European nations, including Spain and Italy, on review for a downgrade.

EUR/USD: on Asian session the pair fell.

GBP/USD: on Asian session the pair fell.

USD/JPY: on Asian session  the pair rose and showed new week’s high

European events for Monday get started at 0745GMT, when ECB Governing Council member Christian Noyer makes remarks at a conference on the Euro Area Sovereign Debt Crisis, in Paris. Main data starts at 0900GMT with the ECB current account data, which is followed at 1000GMT by EMU construction output. Then, at 1530GMT, ECB President Mario Draghi is due to make a statement at a Quarterly Hearing before European Parliament Economic and Monetary Affairs Committee, in Brussels, which is followed at 1700GMT by the ECB financial stability report. US data for Monday starts at 1430GMT with the weekly MNI Capital Goods Index, which is followed at 1500GMT by the first of the US housing data for the week, the NAHB Housing Market Index, while at 1530GMT we get the weekly MNI Retail Trade Index. At 1815GMT, Richmond Fed President Jeffrey Lacker delivers a speech on the economic outlook to the Charlotte Chamber of Commerce in Charlotte, NC.