Asian session: The yen gained versus all its major counterparts

The yen gained versus all its major counterparts. But gains in the yen were limited against the dollar as BOJ Governor Masaaki Shirakawa and his board prepare to meet June 14-15 after the central bank missed targets for bond purchases twice in May. The disruptions to the central bank’s program coincide with increasing pressure from Japanese lawmakers for Shirakawa to step up efforts to support the economy, which is forecast to slow after it strengthened last quarter.

The Dollar Index rebounded from a near one-week low as Asian stocks dropped even after China cut interest rates for the first time since 2008 to stimulate growth. China’s one-year deposit rate and one-year lending rate will both drop by a quarter percentage point effective today, the People’s Bank of China said in a statement yesterday.

Federal Reserve Chairman Ben S. Bernanke refrained from signaling additional steps the U.S. central bank might take to spur growth, when he testified before Congress yesterday. The policy-setting Federal Open Market Committee meets June 19-20.

The so-called Aussie weakened against 14 of its 16 most- traded peers after a government report today that showed the nation’s imports outpaced exports by A$203 million ($200 million), from a revised A$1.28 billion deficit in March.

EUR/USD: during the Asian session the pair fell to $1.2500.

GBP/USD: during the Asian session the pair decreased below $1.5500.

USD/JPY: during the Asian session the pair fell, receded from a yesterday's high.

German data is expected at 0600GMT, with the releasae of the Apr trade balance (nsa/sa and first quarter labour costs. At 0830GMT with the release of May Producer Price Index. French data kicks off at 0630GMT, with the release of the May Bank of France business survey. At 0645GMT, the French April government deficit data, along with French trade data, are released.