Asian session: The yen rose

The yen rose against all of its 16 major peers as Asian stocks dropped and a struggle among U.S. lawmakers to reach budget consensus boosted demand for safe- haven assets. Japan’s currency advanced to a one-week high versus the dollar after Senate Majority Leader Harry Reid said he is “disappointed” in the lack of progress in discussions to avoid the so-called fiscal cliff. “We only have a couple weeks to get something done, so we have to get away from the happy talk” and do “specific things,” Reid told reporters yesterday. U.S. lawmakers are trying to avert a collection of $607 billion in automatic tax increases and spending cuts scheduled to take effect at the beginning of 2013 to prevent a short-term shock to the economy and reach an agreement on long-term deficit reduction.

Demand for the euro was limited amid signs the economic growth in Europe is faltering. In Germany, the region’s biggest economy, the unemployment rate probably held at 6.9 percent in November, according to the median estimate of economists surveyed by Bloomberg News before the data are released tomorrow. The rate was unchanged last month after climbing to 6.9 percent in September, matching the level in November 2011.

Official data in Italy on Nov. 30 may show the nation’s jobless rate rose to 10.9 percent in October, the highest on record in figures going back to 2004.

EUR/USD: during the Asian session, the pair fell to yesterday's lows.

GBP/USD: during the Asian session the pair fell to $ 1.6000.

USD/JPY: during the Asian session the pair fell by updating week's low.