The dollar fell versus the euro on Monday afternoon after a report of lower new home sales and expectations that the Federal Reserve will cut interest rates.

New single-family home sales fell by 4.7 percent in December, the lowest rate in 12 years while the prices for the homes also fell.

The weakening economy raised the chance that the Federal Reserve will cut interest rates by at least 0.50 percent.

The euro was at $1.4781 from $1.4670 on Friday. The dollar fell slightly versus the yen to 106.89 yen from 106.99 yen.

European union