Asian currencies declined on the first day trading of the week on concern that European leaders will fail to curb its worsening debt crisis, reducing the outlook for Asian exports, which supported the stock markets in Asian region to fall.

Moreover, NZ dollar declined to the lowest level in five months against its major counterpart the US dollar after the nation's report that showed its deficit has expanded in August, signaling that the economy recovery is easing and growth in the nation will slow during the upcoming period.

The Australian dollar slid against its U.S. counterpart before a report forecast to show business confidence in Germany (which is Europe's biggest economy) declined to its lowest in 15 months.

On the other hand, the 17-nation currency (Euro) retreated versus its major currencies before a German report that expected to show the business confidence fell to a 15-month low, adding to signs the region's economy is deteriorating.