The dollar fell against the yen and the euro as U.S. stock futures dropped before a report likely to show a gauge of manufacturing in New York slid to a record low.
The decline against the yen was the dollar's fifth in the past six days. The U.S. has entered a recession that will persist into next year, and economies around the world will follow suit, according to a survey by the National Association for Business Economics. Standard & Poor's futures expiring in December fell for a second day.
``There is a perception that the U.S. economy is more exposed to a slowdown than Japan,'' said Neil Mellor, a currency strategist in London at Bank of New York Mellon Corp. ``The yen is winning in the battle with the dollar because it is perceived as a greater safe haven.''
The New York Federal Reserve's general economic index may fall to minus 26.0, from minus 24.6 in October, according to the median forecast of 46 economists. Readings below zero for the Empire State index signal manufacturing activity is shrinking. Every component other than prices was negative for the month.
The MSCI Word Index of equities fell for a second day, slipping 0.5 percent, as stock markets in Europe and Asia declined.