The dollar fell against the euro on Monday ahead of tomorrow's interest rate decisions from European central banks and ratings downgrades for four U.S. mortgage insurers.

The dollar fell 0.6 percent to 1.5808 per euro at 12:28 p.m. in New York, compared to $1.5712 late Tuesday. The U.S. currency fell to 101.86 yen from 102.66. The dollar index, which tracks the dollar against six major currencies, was at 72.077 compared to 72.20 late yesterday.

Economists don't expect surprises from both European banks. The Bank of England is expected to cut its benchmark lending rate to 5 percent, according to a median estimate of a Bloomberg News survey. The European Central Bank is expected to maintain its 4 percent rate.

Late Tuesday Standard & Poor's Ratings Services downgraded mortgage insurers MGIC Investment Corp. PMI Group Inc., Radian Group Inc, and Old Republic International Corp. citing a weaker than expected housing market and rising unemployment.

Yesterday, the U.S. Federal Reserve Bank released the minutes of a policy meeting on March 18 indicating concern over the economy. Most members of the Federal Open Market Committee said a recession was likely in the first half of the year, with slow growth in the second half.