Asian session: The dollar weakened versus most major peers

The dollar weakened versus most major peers as signs that U.S. growth was hampered by a partial government shutdown fueled speculation the Federal Reserve will push back the timing of monetary stimulus reductions.

The greenback approached a two-year low against the euro before a report today that may show continuing jobless claims in the U.S. rose. The U.S. Labor Department may say today the number of people continuing to receive jobless benefits climbed to 2.87 million in the week through Oct. 12 from 2.86 million a week earlier, according to the median estimate of economists surveyed by Bloomberg News. First-time claims probably fell to 340,000 in the period ended Oct. 19 from 358,000 the previous week, a separate poll shows. The partial government shutdown that began Oct. 1 probably trimmed 0.25 percentage point from fourth-quarter economic growth and cost the U.S. 120,000 jobs in October, President Barack Obama’s chief economic adviser said on Oct. 22.

Demand for Europe’s shared currency was supported before data that may indicate faster expansion in the region’s manufacturing and service industries. An advance reading of a composite index for euro-area manufacturing and services due for release today will probably show an increase to 52.4 this month from 52.2 in September, according to analysts in a Bloomberg survey. That would be the highest since June 2011.

Australia’s currency rebounded from its biggest one-day loss in two months. Preliminary data today showed a manufacturing gauge by HSBC Holdings Plc and Markit Economics climbed to 50.9 this month from 50.2 in September.

EUR / USD: during the Asian session the pair rose to $ 1.3790

GBP / USD: during the Asian session, the pair rose to $ 1.6200

USD / JPY: during the Asian session the pair traded in the range of Y97.15-55

In the UK, at 0830GMT, the September SMMT Auto Production Figures will be officially released, although they appear to have been trailed in the FT and show production running at a 5-year high, up 9.9% against Sept 2012. Further UK data will cross the wires at 1000GMT, when the Oct CBI Industrial Trends Survey numbers are set to be published.