The dollar fell against the euro on speculation the Federal Reserve will keep borrowing costs near zero into next year after the U.S. unemployment rate exceeded 10 percent for the first time since 1983.

Sterling advanced for a second week versus the dollar after the Bank of England expanded its debt-buying program less than economists had forecast, reducing concern policy makers are flooding the market with currency. The European Central Bank signaled an exit from economic stimulus before a report next week expected to show the euro zone’s economy expanded.

“The Fed is firmly on hold,” said Alan Ruskin, head of international currency strategy in North America at RBS Securities Inc. in Stamford, Connecticut. “Do you really want to buy the dollar on weak U.S. data? It’s not obvious. On balance, the trading environment remains dollar-negative.”

The dollar declined 0.9 percent to $1.4847 per euro yesterday, from $1.4719 on Oct. 30. The dollar decreased 0.2 percent to 89.88 yen, from 90.09. The euro rose 0.6 percent to 133.45 yen, from 132.61.

Group of 20 finance chiefs will likely urge Asian nations to allow their currencies to appreciate during their meeting this weekend in Scotland, according to UBS AG.

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