The dollar turn down against most major peers on speculation reports this week pointing to a faltering U.S. economy will urge the central bank to consider more asset purchases, or quantitative easing, to support growth.
The dollar slid versus the euro before Federal Reserve policy makers end a two-day meeting today. The euro strengthened after Greece’s Cabinet backed Prime Minister George Papandreou’s plan to put a bailout package to a referendum and before the region’s leaders meet to stem the debt crisis. It pared gains after the European Financial Stability Facility was said to postpone a bond sale.
The U.S. currency weakened 0.5 percent to $1.3765 per euro as of 10:05 a.m. London time, after gaining 3.5 percent over the past three days. The dollar slid 0.4 percent to 78.06 yen. The euro was little changed at 107.44 yen.
The Stoxx Europe 600 Index dropped 0.5 percent, extending the biggest three-day decline in almost two months. German bonds fell, with the 10-year yield rising four basis points to 1.80 percent.