Asian session: The yen gained against its major peers

The yen gained against its major peers as Asian shares sank amid concern about slowing growth in the world’s biggest economies, boosting demand for haven assets. Bank of Japan Governor Haruhiko Kuroda said it will take some time to reach a 2 percent inflation goal.

The dollar dropped to a one-month low versus Japan’s currency before a private report forecast to show sales of previously owned U.S. homes fell and the Federal Open Market Committee starts a two-day meeting tomorrow. An index of pending homes sales in the U.S. probably declined 1 percent in June from the previous month, when it increased 6.7 percent, according to the median estimate of economists surveyed by Bloomberg News before the National Association of Realtors releases the data today.

Economists in a separate Bloomberg poll estimate the Conference Board will say tomorrow its gauge of consumer confidence fell to 81 in July from 81.4 in June.

The Bloomberg Dollar Index touched the lowest in five weeks as investors weighed whether the economy is robust enough for the Fed to reduce stimulus.

The euro was supported before European Central Bank policy makers meet in Frankfurt on Aug. 1, following a pick up in factory activity this month. Germany led the first expansion in euro-area manufacturing in two years, according to surveys of purchasing managers published last week by London-based Markit Economics, lending support to ECB President Mario Draghi’s prediction of an economic recovery later in 2013.

EUR / USD: during the Asian session the pair rose to $ 1.3290

GBP / USD: during the Asian session the pair rose to $ 1.5405

USD / JPY: during the Asian session the pair fell to Y97.60

Markets remain lacklustre with attention on this week`s risk events, FOMC policy statement Wednesday, ECB and BOE rate announcements Thursday with the US employment report ending the week Friday. US Q2 GDP and ISM non-mfg will also be in focus.