The dollar traded within a half-cent of the weakest level against the euro since before Lehman Brothers Holdings Inc.'s bankruptcy on bets the Federal Reserve will trail other central banks in increasing borrowing costs.

Sterling rose from a six-month low against the euro as Bank of England Deputy Governor Charles Bean said asset purchases may be working to support the economy. The yen was little changed against the dollar before a Bank of Japan meeting today at which policy makers may decide to withdraw emergency credit-easing programs after businesses regained access to private funding.

"The dollar weakness has everything to do with the monetary policy outlook," said Sacha Tihanyi, a currency strategist at Scotia Capital Inc. in Toronto. "There's a potential for rates to stay low for a long period of time."

The U.S. currency traded at $1.4854 per euro at 6:02 a.m. in Tokyo, after depreciating 0.5 percent Monday and reaching $1.4876, the weakest level since Aug. 22, 2008. The euro was at 133.23 yen, after a 0.4 percent increase. The dollar was little changed at 89.69 yen.

Gold futures reached $1,069.70 an ounce in New York on concern a weakening dollar and faster inflation will enhance the appeal of precious metals. Treasuries rose for the first time in three days on speculation the dollar's decline will spur demand among foreign investors.

Japan's central bank will leave its benchmark interest rate at 0.1 percent today, according to all 20 economists surveyed by Bloomberg News.