The yen advanced from near a two-week low versus the U.S. dollar as Asian stocks slumped for a second day amid concern a cash crunch in China will curb economic growth, supporting demand for haven assets. Goldman Sachs Group Inc. and China International Capital Corp. yesterday joined banks from Barclays Plc to HSBC Holdings Plc in paring growth projections for China this year. The cuts followed a tightening in central bank liquidity that yesterday left the overnight repurchase rate more than double the year's average.

The yen strengthened for a second day with a host of U.S. central bankers scheduled to speak this week after two Federal Reserve presidents yesterday emphasized that policy remains accommodative. The dollar retraced some gains yesterday after Dallas Fed President Richard Fisher said investors shouldn't overreact to the central bank's plan to slow bond purchases. Minneapolis Fed President Narayana Kocherlakota said to reporters in a conference call that the central bank must emphasize that policy will remain accommodative "for a considerable time" after the end of quantitative easing. This week will see speeches from Fed Bank of Atlanta President Dennis Lockhart, Richmond Fed President Jeffrey Lacker, Cleveland Fed President Sandra Pianalto and San Francisco Fed President John Williams.

The Dollar Index held a four-day gain before reports that economists said will show durable-goods orders rose and house prices increased. U.S. durable-goods orders probably increased 3 percent in May after rising a revised 3.5 percent the previous month, according to a Bloomberg News survey of economists before the Commerce Department report today. The S&P/Case-Shiller index of home values for 20 cities climbed 10.6 percent for the year ended April after a 10.9 percent gain in March that was the biggest since 2006, a separate survey showed.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3110/35

GBP / USD: during the Asian session the pair fell to $ 1.5425/55

USD / JPY: during the Asian session the pair traded in the range of Y97.25/05

There is a heavy calendar Tuesday, with data on both sides of the Atlantic and a slew of European central bank speakers on the schedule. The calendar gets underway at 0600GMT, with the release of the latest German construction orders data. There is a raft of French data released at 0645GMT, with The French June business climate indicator, along with the manufacturing and service sector sentiment indices due. The Business confidence Indicator is expected to tick up to 93 from May's 92. Also at 0645GMT, French May housing starts/permits data will be published. At 0700GMT, Spanish May PPI numbers will be released, and are seen up 0.1% on month, but down 0.3% on year.