Dollar Drops as ECB Speculation Lowers U.S. Yields

The dollar fell against a basket of major peers for the first time in four days as Treasury yields declined on speculation the European Central Bank will introduce easing measures to boost the region’s economy.

The U.S. currency weakened the most against the yen in a week as Treasury 10-year note yields reached the lowest level in six months. The pound weakened after the Bank of England signaled it’s willing to wait until next year to increase interest rates even as the U.K. economy strengthens. Brazil’s real rose to a one-month high as Finance Minister Guido Mantega said the currency is back to normal after recovering losses.