Dollar Falls

Copenhagen - The dollar weakened to $1.50 against the euro for the first time in two weeks after the Group of 20 nations remained silent on the U.S. currency’s decline this year and agreed to maintain stimulus measures.

The Dollar Index, which tracks the greenback against currencies of six trading partners, dropped to the lowest level since Oct. 23 after a report showed Germany’s exports climbed more than economists predicted in September, adding to signs the region’s economy is recovering. The pound rose to the highest level in three months on speculation Kraft Foods Inc. may boost its 9.8 billion pound ($16.5 billion) bid for Cadbury Plc by today’s deadline to keep the takeover attempt alive.

“The G-20 didn’t make any comments about recent dollar weakness, so the market continues to sell the U.S. currency,” said Antje Praefcke, a currency strategist at Commerzbank AG in Frankfurt. “Overall sentiment has improved and we expect the euro to extend gains against the dollar.”

The dollar depreciated 1 percent to $1.4995 per euro as of 10:43 a.m. in London, trading as weak at $1.5006. The euro advanced 1 percent to 134.81 yen. The U.S. currency traded little changed at 89.90 yen, down from as high as 90.26 yen. The pound jumped 1.3 percent to $1.6822, the highest level since Aug. 6. The Dollar Index fell to 74.997, from 75.819 on Nov. 6.

The dollar dropped after Chancellor of the Exchequer Alistair Darling, hosting a meeting in the U.K. of finance ministers from G-20 nations, said his colleagues decided to keep supporting their economies.

“We agreed to maintain support for the recovery until it is assured,” Darling said on Nov. 7. “We are not out of the woods yet.”