The 16-nation currency headed for a fourth day of losses against the yen as Asian stocks sank and before a report forecast to show German unemployment rose in October. Gains in the yen were tempered amid speculation Japanese investors will purchase overseas assets this week in search of higher returns. So the yen traded near the highest in two weeks against the euro amid signs the global economic recovery is losing steam, damping demand for higher-yielding assets.

Finance companies in Japan are looking to raise about 1.7 trillion yen ($18.8 billion) for mutual funds focused on foreign assets today and tomorrow. Japanese investors bought 304.9 billion yen more in overseas bonds and notes than they sold during the week ended Oct. 24, figures from the Finance Ministry showed in Tokyo today.

As optimism about the global economy wanes, investors will question if any other central bank besides the Reserve Bank of Australia is willing to hike rates. Emerging uncertainty about exit strategies may trigger unwinding of carry trades that were used to secure higher yields.

The yen traded at 133.08 against the euro at 6:07 a.m. in London from 133.43 yesterday in New York. It earlier reached 132.81 yen, the highest level since Oct. 14. The dollar was at $1.4727 per euro from $1.4706 after reaching $1.4683, the strongest level since Oct. 12. The yen fetched 90.37 per dollar from 90.75 in New York.

New Zealand’s dollar headed for its first monthly drop since February against the dollar on growing uncertainty over interest rates. The New Zealand dollar was near the lowest level in three weeks after the central bank left the key rate unchanged and signaled it won’t rise until the second half of 2010, damping demand for the nation’s assets. New Zealand’s dollar was at 0.7214 U.S. cents. It earlier hit 0.7163 cents, the least since Oct. 5. The U.S. dollar reached against the Canadian dollar as high as C$1.0821, the strongest level since Oct. 5.

The euro headed for the longest stretch of losses since September against the yen as the market is waiting for the jobs report to be released later today. Data recently released was far from being completely reassuring, fueling doubts about the sustainability of the recovery. The euro may remain soft versus both the dollar and the yen in the short term, as risk appetite remains capped and investors book profits.

It’s forecasted for third-quarter U.S. gross domestic product growth to 3.2 percent from -0.7 percent. The Commerce Department’s report on gross domestic report is due at 12:30 p.m. GMT.

The Standard & Poor’s 500 Index dropped 2 percent yesterday on concern a rally in equities this year outpaced prospects for economic growth. The MSCI Asia Pacific Index of regional shares fell for a third day, losing 1.3 percent, while Japan’s Nikkei 225 Stock Average slid 1.8 percent, the steepest drop since Oct. 2.