The dollar declined against most of its 16 major peers before the Federal Open Market Committee starts a two-day meeting tomorrow. The Dollar Index (DXY) slid toward a four-month low amid speculation the Federal Reserve will buy bonds in a third round of quantitative easing, or QE, a measure that tends to debase the currency.

Demand for the euro was limited before a report this week which may add to signs of a slowdown in the region’s economy. Economists in a Bloomberg News survey estimate euro-area industrial production declined 3.3 percent in July from a year earlier. The European Union’s statistic office in Luxembourg will report the data tomorrow.

Germany’s Federal Constitutional Court is due to rule tomorrow on the country’s participation in the European Stability Mechanism, a permanent 500 billion-euro ($639 billion) fund that offers loans to member states and may buy their bonds to lower borrowing costs. Germany will be the biggest contributor to the fund with a 27 percent share, a statement from the European Commission shows.

EUR/USD: during the Asian session, the pair recovered after yesterday's decline.

GBP/USD: during the Asian session, the pair rose to yesterday’s high - $1.6015.

USD/JPY: during the Asian session, the pair traded around Y78.20.