The dollar may decline on speculation U.S. reports this week will add to evidence a housing recession is slowing economic growth in the world's biggest economy.
The dollar fell against 13 of 16 most-active currencies as the Richmond Federal Reserve Bank's manufacturing survey due for release today probably declined in October for the first time in four months. A separate report tomorrow may show existing home sales dropped to the lowest in almost six years. Traders increased bets that the Fed will lower interest rates this month.
``Any rise in the dollar is likely to be short-lived,'' said Tokichi Ito, deputy general manager of foreign exchange at Trust & Custody Services Bank Ltd. in Tokyo. ``The U.S. economy is in a very precarious state.''
The dollar traded at 114.48 yen at 11:54 a.m. in Tokyo from 114.55 late in New York yesterday when it weakened to 113.26 yen, the lowest since Sept. 10. It was also at $1.4203 per euro from $1.4181 yesterday when it reached a record low of $1.4348. The currency may fall to 114 yen today, Ito forecast.
The U.S. currency may extend the past month's 0.8 percent decline versus the yen as the Richmond Fed's survey of manufacturing in the Atlantic region declined to 8 in October from 14 in September, according to a Bloomberg News survey of economists. The Richmond Fed said Oct. 17 the economy in its region has cooled because of the housing market.
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