The euro weakened to $1.4192 as of 1:18 p.m. in Tokyo from $1.4241 yesterday in New York and $1.4282 on Aug. 5. The common currency declined 0.4 percent to 108.96 yen, set for a 2.7 percent drop this week, the most since the period ended May 6. The dollar bought 76.80 yen from 76.84 yesterday.

The Swiss franc climbed 0.6 percent to 1.07840 per euro, paring yesterday's 5 percent plunge.

Declines in the euro were limited after the European Securities and Markets Authority signaled that France, Spain, Italy and Belgium will impose bans on short-selling from today to stabilize markets after European banks including Societe Generale SA hit their lowest level since the credit crisis.

National regulators will impose the bans, the group said in a statement after talks ended late yesterday. French President Nicolas Sarkozy and German Chancellor Angela Merkel will meet next week after concerns over the spread of the region's debt crisis rattled French markets.

A preliminary reading of the Thomson Reuters/University of Michigan index of consumer sentiment fell to 62 this month, according to the median estimate in another survey before today's data. That would be the lowest since March 2009.

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New Zealand's dollar declined against all 16 major peers as prospects for slower global growth damped demand for higher- yielding assets. The kiwi fell 1 percent to 82.33 U.S. cents and weakened 1.1 percent to 63.25 yen. Australia's dollar slipped 0.6 percent to $1.0286 and dropped to 79.06 yen from 79.55.

U.S. retail sales gained 0.5 percent in July from June, when they rose 0.1 percent, the biggest increase in four months, according to the median estimate of economists surveyed by Bloomberg News ahead of today's data.

The JPMorgan Global FX Volatility Index fell to 13.83 yesterday, after climbing to 14.72, the highest since June 2010. The yen strengthened yesterday to as high as 76.31 per dollar, nearing a record high of 76.25 reached on March 17.

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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