The dollar weakened against the euro and yen after U.S. pending home sales unexpectedly rose in October and stocks climbed, fueling investor appetite for riskier assets. The euro earlier fluctuated versus the greenback after European Central Bank President Jean-Claude Trichet signaled policy makers will delay their withdrawal of stimulus measures and said record-low interest rates are “appropriate.” “The market came back because the stock market is surging right now and a risk-on trade is going on throughout the market, especially after the pending home sales, which was a big difference compared to the forecast,” said Hidetoshi Yanagihara, a senior currency trader at Mizuho Financial Group Inc. in New York. The dollar depreciated 0.4 percent to $1.3186 per euro at 10:31 a.m. in New York, from $1.3139 yesterday. It weakened 0.2 percent to 84.02 yen, from 84.19 yen. The Standard & Poor’s 500 Index rose 0.8 percent as a report showed more Americans unexpectedly signed contracts to buy previously owned homes in October, easing concern that the absence of government support is destabilizing the housing market. The index of pending home resales jumped a record 10 percent after dropping 1.8 percent in September, the National Association of Realtors said today in Washington. The median forecast in a Bloomberg News survey called for a 1 percent decrease. The group’s data go back to 2001. To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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