Dollar Drops for 2nd Day on Fed Rate Bets; Real Tumbles

The dollar fell for a second day versus major peers on speculation the Federal Reserve will maintain record-low interest rates for an extended period after it cuts its bond-buying program.

The U.S. currency extended losses as data showed contracts to purchase existing homes rose less than forecast, a day before the central bank begins a two-day policy meeting. The euro rose against the U.S. currency as results of European Central Bank stress tests eased concern that balance sheets at some lenders were too weak. Brazil’s real tumbled to its lowest level in almost six years after President Dilma Rousseff narrowly won a second term. The ruble slid.