Taking the downfall to its strongest level recorded since September, the US Dollar once again fell against the Euro, on the back of speculations that the Federal Reserve would not look for an early exit from the stimulus measures that are being currently taken to help the country's economy.

For the second consecutive day, the Dollar fell against the currency of 16 European nations as a sudden and unexpected decline in sales of new residential properties and a new report revealing the drop in business activity managed to bring out the vulnerability and instability of the American economic recovery.

Japan's Yen also traded near its weakest level recorded in 8 weeks, on speculations that the Bank of Japan might extend credit easing to ensure that deflation does not push the country back into recession.

"The market has gone too fast and too far pricing in prospects for an increase in U. S. rates. The dollar may succumb to selling pressure as the excessive optimism about interest rates in the U. S. weakens", said Akio Yoshino, chief economist in Tokyo at Societe Generale Asset Management (Japan) Co.

At about 12.41 pm in Tokyo, the US Dollar traded at $1.4345 per Euro, as compared to yesterday's value of $1.4337 recorded in New York.