The US dollar declined today as commodities and stocks rebounded after the last week’s slump, decreasing the demand for the greenback as a safe haven.

The Standard & Poor’s 500 Index went down 0.3 percent, following the previous decline by 0.7 percent, while the Reuters/Jefferies CRB Index of raw materials advanced as much as 0.8 percent. The dollar weakened against the euro on the speculation that Germany, which previously strongly opposed the proposal to expand the €750 billion ($966 billion) bailout fund of the European Union, may soften its stance. The matter of extending the bailout reserves may be discussed by the European leaders next month.

The Dollar Index dropped 0.1 percent to 80.911 by 12:57 from 81.012 on January 7th, after earlier reaching 81.313, the highest level since December 1st. The index rallied 2.5 percent last week and it’s not surprising that it had taken a break.

EUR/USD advanced from 1.2894 to 1.2952 as of 20:00 GMT today. GBP/USD rose from 1.5535 to 1.5580, following the previous decline to 1.5474. USD/JPY dropped from 83.14 to 82.78.

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