Dollar falls to one-year euro low

The US dollar has fallen to a one-year low against the euro ahead of the G20 meeting of world leaders.

The dollar dropped to $1.4840 against the euro and it also fell against a basket of other currencies.

Traders have been switching to other currencies as signs of economic recovery have begun to emerge, with many countries having exited recession.

New Zealand has became the latest nation to end its recession, joining the likes of Germany, France and Japan.

The New Zealand dollar rose to its highest level against the US currency for 13 months, after the country unexpectedly pulled out of recession in the second quarter of the year. The New Zealand dollar rose by more than a cent to $0.7315, its highest since early August 2008.

Against the Japanese currency, the dollar fell to 90.90 yen from 91.24 yen, while the British pound rose to $1.6366 from $1.6352.

The low yield status of the US dollar has also prompted speculators to sell it ahead of a Federal Reserve decision on interest rates due later on Wednesday. The US central bank is expected to keep rates at record lows.