The euro fell to one-week low against the dollar after an index of German business confidence unexpectedly fell in September, adding to signs that the euro zone debt crisis hinders the region's economy.

The single currency continued its five-day decline against the yen after German Chancellor Angela Merkel and French President Francois Hollande were unable to agree on the start time of a single regulator of the banking sector in the eurozone. German Chancellor Angela Merkel and French President Francois Hollande In the last weekend of negotiations failed to agree on the start time of a single regulator of the banking sector in the eurozone. F.Olland stands for "as quickly as possible activation" controller, while Merkel rejects those calls.

IFO institute in Munich said its business climate index fell again, registering with the fifth consecutive drop in a row.

The Australian dollar weakened on speculation that growth in China, which is its biggest trading partner, is deteriorating. According to the head of the National Development and Reform Commission Zhang Ping downward pressure on the economy of the Asian countries is increasing, the problems in Europe are still in the phase of 'high risk', and the global economic recovery is "rough."

The euro fell today to $ 1.2925, while reaching the lowest level since September 13. The single currency dropped to 100.64 yen, which is a minimum of 24 July.

The yen strengthened against all major currencies amid falling stocks triggering a series of stop orders in the market, which accelerated the overall decline observed today.

In accordance with the released data, Japan's economy back on the road to recovery. At the same time, the Bank of Japan unexpectedly increased its asset purchase fund to 55 trillion yen ($ 710 billion).

The New Zealand dollar fell on speculation that the differences between the leaders of the eurozone could cause a negative impact on growth prospects, leading to a decline in demand for higher-yielding assets.

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- E785mln 3.50% 2017 OLO; avg yield 1.241% (1.34%), cover 2.11 (1.76)

- E500mln 3.00% 2019 OLO; avg yield 1.997% (2.004%), cover 2.32 (1.48)

- E784mln 4.25% 2021 OLO; avg yield 2.389%, cover 2.08

- E945mln 4.25% 2022 OLO; avg yield 2.609% (2.584%), cover 1.85 (1.88)

EUR/USD $1.2925, $1.2950, $1.3000, $1.3050, $1.3100, $1.3125

USD/JPY Y77.50, Y78.00, Y78.45

GBP/USD $1.6150, $1.6250, $1.6300

EUR/GBP stg0.8000

AUD/USD $1.0475, $1.0500

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- E3.798bln 3-month BTF, avg yield -0.016% (-0.012%), cover 2.88 (2.77)

- E1.698bln 6-month BTF, avg yield -0.006% (-0.004%), cover 4.37 (5.83)

- E1.269bln 12-month BTF, avg yield 0.006% (0.029%), cover 2.86 (2.68)

Data
08:00 Germany IFO - Business Climate September 102.3 102.7 101.4
08:00 Germany IFO - Current Assessment September 111.2 111.0 110.3
08:00 Germany IFO - Expectations September 94.2 95.0 93.2

The euro fell against the dollar and the yen amid controversy in Germany and France on the start time of a single regulator of the banking sector in the eurozone.

German Chancellor Angela Merkel and French President Francois Hollande In the last weekend of negotiations failed to agree on the start time of a single regulator of the banking sector in the eurozone. F.Olland stands for "as quickly as possible activation" controller, while Merkel rejects those calls.

Well as the pressure on the single currency in the region has published statistics where German business confidence collapsed to a minimum for more than 2.5 years. Thus, the index of business sentiment IFO 101,4 versus 102.3 projected. Expectations index 93.2 vs 95.0 forecast. The current conditions index 110.3 versus 111.0 projected.

The Australian dollar fell against most major currencies, amid reports of further weakening of economic growth in China, which is the largest trading partner of Australia.

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  Germany sold E1.173bln 12-month Bubill at average yield -0.0184% (-0.0246%), cover 5.1 (2.0) and E1.827ln or 60.9% held for secondary market operations vs 34.2% previously.

EUR/USD

Offers  $1.3020, $1.3000, $1.2980

Bids $1.2890/85, $1.2855/50, $1.2810/00

• Should monitor the impact of the yen's rise on the Japanese economy

• We are not trying to directly influence the exchange rate yen

• Will act as needed to counter the influence of the yen on the economy, prices

• Slowing foreign economies exacerbated recovery delayed

• Concerned about signs of weakness in the U.S. economy

• There is little difference in the basic thinking, the effect of easing the Fed and the Bank of Japan

EUR/USD $1.2925, $1.2950, $1.3000, $1.3050, $1.3100, $1.3125

USD/JPY Y77.50, Y78.00, Y78.45

GBP/USD $1.6150, $1.6250, $1.6300

EUR/GBP stg0.8000

AUD/USD $1.0475, $1.0500

The yen advanced versus all of its major counterparts as Asian stock declined amid concern disagreement on debt-crisis solutions will curb European growth, supporting demand for haven assets. Japan’s currency touched its strongest in more than a week against the euro before a report that may show business confidence in Germany held near the lowest in more than two years. The Ifo institute’s business climate index, a gauge of confidence among German executives, was probably at 102.5 this month, according to the median estimate of economists in a Bloomberg News survey. The index fell to 102.3 in August, the lowest since March 2010. The Munich-based institute will release the data today.

German Chancellor Angela Merkel and French President Francois Hollande clashed over the weekend on a timetable to introduce joint oversight of the euro area’s banking sector.

Australia’s dollar slid versus its peers on speculation growth in China, its biggest trading partner, is weakening.

On Friday the euro rose against the dollar after the media reported that the euro-area policy will present a program of financial rescue Spain in the beginning of next week.

The single currency rose for the first time in four days against the yen after the Financial Times said that officials of Spain and the European Union are working on plans for bond purchases by the European Central Bank to support the economy of countries in need.The plan will be announced on September 27 and will focus on structural reforms in the economy of Spain, at the request of the EU, not in new taxes and spending cuts.

Also, the Spanish Prime Minister Mariano Rajoy will meet with his Italian counterpart Mario Monti in Rome.

The pound rose to its highest level in over a year against the dollar, despite the fact that the United Kingdom reported the largest budget deficit in August.

The Canadian dollar was down against the U.S. dollar after the controversial data on consumer prices in Canada in August. Basic annual inflation in Canada was 1.6%, below the Bank of Canada's target of 2% in the medium term. Overall inflation was 1.2%. Economists had expected core inflation of 1.5%, and the total - 1.3%.

08:00 Germany IFO - Business Climate September 102.3 102.7

08:00 Germany IFO - Current Assessment September 111.2 111.0

08:00 Germany IFO - Expectations September 94.2 95.0

12:30 U.S. Chicago Federal National Activity Index August -0.13

19:00 Canada BOC Gov Carney Speaks -

19:30 U.S. FOMC Member Williams Speaks -