The yen fell against the dollar and the euro as Bank of Japan policy makers are expected to increase purchases of government debt to safeguard the recovery and limit the currency’s strength.

Japan’s currency snapped seven days of gains against the euro after people with knowledge of the matter said the central bank may also expand an emergency-loan program for banks as it seeks to stave off deflation.

The yen and the dollar dropped against higher-yielding currencies on speculation Federal Reserve Chairman Ben S. Bernanke will win lawmakers’ support for a second term. The dollar declined before a report that may show sales of existing U.S. homes dropped last month.

President Obama assured that Bernanke will win. Bernanke helped steer the global economy to recovery after the recession triggered $1.74 trillion of losses and write downs worldwide.

The yen depreciated to 127.39 per euro at 8:26 a.m. in London from 126.98 in New York last week. It weakened to 90.06 per dollar, from 89.82. It traded at 89.79 on Jan. 22, its strongest level since Dec. 18. The dollar was at $1.4141 per euro from $1.4139, after appreciating to $1.4029 on Jan. 21, its best level since July.

Japan’s central bank will leave interest rates unchanged tomorrow. How it responds in coming months will depend on the extent of any further economic shocks, such as a surge in the yen to November’s 14-year high, said the people, who spoke on condition of anonymity because the talks are private.