The euro fell to an almost two-year low after Spain’s borrowing costs climbed as the nation struggles to rescue its troubled banks, fueling concern Europe’s debt crisis is spreading. Spain backtracked on a plan to use government debt instead of cash to bail out Bankia, as Prime Minister Mariano Rajoy struggles to shore up the nation’s lenders without overburdening public finances. The European currency was poised for the biggest monthly decline since September after Bank of Spain Governor Miguel Angel Fernandez Ordonez resigned a month early amid criticism over the May 9 nationalization of Bankia group, Spain’s third- biggest lender.

The dollar gained versus peers before data this week forecast to show consumer confidence remained weak and the jobless rate rose across the 17 nations that share the euro. Consumer confidence in the euro area was at minus 19.3 in May, compared with minus 19.9 in April, according to a Bloomberg News survey before the final reading is released today. The unemployment rate climbed to 11 percent in April, the highest in data compiled by Bloomberg going back to 1990, a separate survey of economists showed before the June 1 report.

The Australian dollar weakened after data today showed the nation’s retail sales unexpectedly fell last month. Sales fell 0.2 percent in April from the prior month, when they advanced a revised 1.1 percent, the Bureau of Statistics said in Sydney today. The median forecast of economists in a Bloomberg News survey was for a 0.2 percent increase.

EUR/USD: during the Asian session the pair decreased to a yesterday's low.

GBP/USD: during the Asian session the pair decreased to a yesterday's low.

USD/JPY: during the Asian session the pair traded in range Y79.40-Y79.55.

At 0800GMT, the ECB measure of M3 data for April is due, while at the same time, ECB Governing Council member Miguel Fernandez Ordonez is due to speak before a Senate Budget Committee, in Madrid. UK data at 0830GMT sees Bank of England data for lending to individuals. The monthly personal lending data keep painting the same picture of negligible levels of net unsecured borrowing.