Sept. 24 — The dollar fell against the yen and traded near a record low against the euro on speculation reports on housing and consumer confidence will add to pressure on the U.S. Federal Reserve to cut interest rates.

The U.S. dollar declined against 13 of the 16 major currencies before data tomorrow that will show the lowest existing home sales in five years and the weakest household confidence in more than a year, according to separate Bloomberg News surveys. The currency slid for a third day against both the pound and the Canadian dollar.

“The dollar has established significant downside momentum,” said Ray Attrill, director of foreign exchange research at Forecast Ltd. in Sydney. “Expectations for more Fed easing are reasonably grounded by expectations for further evidence of housing market weakness.”

The dollar fell to 115.10 yen at 12:35 p.m. in Tokyo from 115.50 late in New York on Sept. 21. It traded at $1.4101 against the euro from $1.4091 last week and a record low of $1.4120. Against the pound, the dollar reached $2.0266, the lowest since Sept. 13, from $2.0203. It may fall to $1.42 against the euro this week, Attrill said.

Trading may be less than usual as Japanese financial markets are closed for the Autumnal Equinox, a public holiday. Against the Canadian dollar, the U.S. currency fell to $1.0018 from $0.9992 on Sept. 21, when it declined to a 31-year low of $1.0064.

Housing Decline

Home resales declined 4.5 percent to an annual rate of 5.49 million, according to a survey of economists before the National Association of Realtors releases the data. The New York-based Conference Board’s index of consumer confidence retreated to 104.4 this month from 105 in August, a separate survey showed.

Since the Fed cut the target for overnight lending between banks by 50 basis points on Sept. 18, traders have pushed the yield on Treasury two-year notes to almost three quarters of a point below the 4.75 percent benchmark rate.

In the three previous occasions during the past 20 years when that has happened, policy makers have cut borrowing costs. The Fed next meets Oct. 30-31.

Futures traders increased their bets that the euro will gain against the U.S. dollar, according to data from the Washington-based Commodity Futures Trading Commission.

Futures Bets

The difference in the number of wagers by hedge funds and other large speculators on an advance in the euro compared with those on a drop — so-called net longs — was 86,049 on Sep. 18, compared with net longs of 58,214 a week earlier.

Gains in the yen may be limited by speculation Yasuo Fukuda, the new leader of Japan’s ruling Liberal Democratic Party, will struggle to pass laws after his likely confirmation as prime minister tomorrow. The currency may fall against the euro on prospects Fukuda will slow structural reforms to woo voters.

Outgoing Prime Minister Shinzo Abe’s resignation followed the loss of control of the upper house in the Diet amid voter dissatisfaction with a pension fund scandal and a growing wealth divide. Signs of a political deadlock may trim bets for a Bank of Japan interest-rate increase.

“Some in the market expect there will be lessened focus on structural reforms, which could lead to stock weakness,” said Dai Sato, manager of the Singapore treasury department at Mizuho Corporate Bank Ltd. “The BOJ isn’t in an environment where it may be able to raise rates. The yen is unlikely to strengthen.”

The yen traded at 162.25 against the euro from 162.64. It may decline to 163.00 per euro today, Sato said.

The odds of the Bank of Japan raising rates next month from 0.5 percent were unchanged at 9 percent, based on calculations by Credit Suisse Group using overnight interest-rate swaps.

Futures traders reversed bets that the yen will gain against the U.S. dollar. Yen net shorts against the dollar stood at 21,067 on Sep. 18, compared with net longs of 5,585 a week earlier, according to CFTC data.