By Stanley White Nov. 7 (Bloomberg) -- The dollar fell against the euro and the yen on speculation a government report will show the U.S. economy lost the most jobs since 2003, bolstering the case for the Federal Reserve to lower interest rates. The U.S. currency also declined versus the British pound as futures traders increased bets the Fed will cut borrowing costs by half a percentage point to 0.5 percent compared with a benchmark rate of 3 percent in the U.K. A Labor Department report today may also show the unemployment rate in the U.S. rose to a five-year high as the global economic downturn deepened. ``People are trimming bets on dollar gains before the payrolls data,'' said Tokichi Ito, deputy general manager of foreign exchange in Tokyo at Trust & Custody Services Bank Ltd., a unit of Japan's second-largest publicly traded lender. ``The focus is on fundamentals and there are serious doubts about the U.S. economy and corporate earnings.'' The dollar fell to $1.2753 per euro at 2:07 p.m. in Tokyo from $1.2715 late yesterday in New York. Against the pound, it declined to $1.5683 from $1.5627. The U.S. currency bought 97.53 yen from 97.75. The euro was little changed at 124.35 yen. The dollar may fall to $1.2830 versus the euro today, Ito said. To contact the reporter on this story: Stanley White in Tokyo at swhite28@bloomberg.net

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