The dollar fell a second day against the euro in Currency Trading

The dollar fell a second day against the euro in Currency Trading

The dollar fell a second day against the euro in Currency Trading after a Group of 20 pledge to avoid “competitive devaluation” to spur exports prompted investors to sell the greenback amid prospects for credit easing in the U.S.

The U.S. currency slid against 15 of its 16 major counterparts on speculation the Federal Reserve will signal another round of bond purchases next week, debasing the greenback.

Australia’s dollar surged to within one U.S. cent of parity after a report showed producer prices rose faster than economists estimated. Asian currencies gained versus the dollar on the prospect nations in the region will refrain from intervening in foreign-exchange markets.

The dollar fell to $1.4037 per euro as of 1:24 p.m. in Tokyo from $1.3954 last week. The U.S. currency declined 0.5 percent to 81.01 yen, after dropping to 80.85 on Oct. 20, the weakest since April 1995. The euro traded at 113.71 yen from 113.53, and advanced 0.2 percent to 1.3657 Swiss francs.

G-20 officials, ending a meeting in South Korea on Oct. 23, pledged to refrain from “competitive devaluation” and to let markets set foreign-exchange values, seeking to calm fears that a trade war may break out if nations use cheaper currencies to spur growth. Policy makers called for more sustainable current- account deficits without embracing a U.S. proposal for targets. The G-20 Seoul Summit will be held on Nov. 11 and 12.

The Fed may buy $2 trillion of assets to stimulate the U.S. economy, starting with a program of about $500 billion of buying over six months that is likely to be announced at the November meeting, Goldman Sachs Group Inc. wrote in a note to clients.