Dollar Falls Before Fed Reveals Interest-Rate Stance, Actions

The dollar declined against the euro and the yen before a Federal Reserve meeting where policy makers may set the stage for additional steps to boost the economy.

Japan’s currency weakened against the euro as housing starts in the U.S. rose more than forecast in August, easing concern the recovery is faltering and boosting appetite for higher-yielding assets. The euro rallied versus the greenback to nearly a six-week high after investors bought the maximum amounts offered at Spanish and Irish debt sales, reducing concern the region’s sovereign debt crisis will worsen. The Australian dollar reached its highest level since July 2008.