June 9 (Bloomberg) -- The dollar fell against the euro and the yen as stocks rose and speculation the global recession may end this year damped demand for the U.S. currency as a refuge. The dollar also weakened as the U.S. prepared to sell $35 billion of three-year notes today, part of a plan to issue a record amount of debt to finance economic stimulus measures. Nobel prize-winner Paul Krugman said yesterday the recession may be over by September. The pound rose as the U.K. political turmoil eased and a report showed house prices stabilized. The ringgit weakened after Malaysia had its debt rating cut by Fitch Ratings for the first time since the Asian financial crisis. “Concern over bond supply has halted, for the time being, the dollar correction,” said Henrik Gullberg, a foreign- exchange strategist in London at Deutsche Bank AG. “The market is wary over whether demand can be sustained at the strong levels we’ve seen at previous auctions.” The euro rose against the dollar for the first time in three days, climbing 0.2 percent to $1.3933 as of 9:24 a.m. in London. The yen strengthened 0.5 percent to 98.03 per dollar and rose 0.2 percent to 136.61 against the euro. The pound appreciated 0.5 percent to $1.6130 and 0.2 percent to 86.41 pence per euro. The ringgit fell 0.8 percent to 3.6009 per yen. If demand is “strong” at this week’s Treasury auctions the dollar may strengthen to $1.35 per euro, Gullberg said.

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