Dollar Falls Versus Major Peers on Slowing Economy; Krona Jumps

The dollar fell versus most major peers after a drop in housing sales and slowing in a regional gauge of manufacturing bolstered speculation the Federal Reserve will maintain stimulus and keep interest rates low.

The euro touched the highest level in a week against the dollar and currencies of commodity exporters gained as investors sought higher-yielding assets. The yen dropped versus the European currency as Japan slid into its third recession in a decade and Prime Minister Naoto Kan said he expects the central bank to maintain a flexible monetary policy.