Trading volumes may be below usual on Monday because of the Presidents' Day U.S. public holiday.

The dollar has fallen versus 13 of the 16 most-active currencies since Sept. 18 as the Fed cut rates by 2.25 percentage points to 3 percent to revive growth. The U.S. and Japanese economies may fall into a recession this year, and the Federal Reserve may lower rates by half a percentage point at its next meeting in March, said Toyoo Gyohten, Japan's former top currency official, in an interview with Bloomberg Television.

Housing Data

The National Association of Home Builders/Wells Fargo index of homebuilder sentiment probably held at 19 for a second month in February, one point above the record low reached in December, according to a survey of economists by Bloomberg News, before the data is released tomorrow. U.S. housing starts remained near a 16-year low in January, according to a separate survey before a Commerce Department report on Feb. 20.

Carry Trades

The yen fell against 11 of the 16 most-active currencies after Japanese stocks rose, giving investors confidence to add to so-called carry trades.

The currency declined the most against the South African rand and the New Zealand dollar as the Bank of Japan last week signaled it is in no hurry to raise its 0.5 percent benchmark rate.

``The financial markets are calming down,'' said Tetsu Aikawa, deputy general manager of the capital markets division in Tokyo at Shinsei Bank Ltd., Japan's eighth-largest publicly listed lender. ``There are expectations stocks have almost bottomed out. This improvement of the sentiment will encourage yen selling.''