The dollar dropped against all of its major counterparts as equities rallied on better than expected corporate earnings and commodities advanced, sapping demand for a refuge. Raw materials rallied after a report showing China’s manufacturing may expand in October for the first time in four months, snapping the longest contraction since 2009.

The 17-nation euro erased its drop versus the dollar and yen as European politicians attempted to craft an effective response to the region’s sovereign debt crisis. European leaders meeting in Brussels yesterday outlined plans to assist banks, heading toward a revamped strategy to resolve the debt crisis. The 13th summit in 21 months excluded a forced restructuring of Greece’s debt, keeping with the policy of encouraging bondholders to accept “voluntary” losses to help restore the country’s finances. Leaders will meet again Oct. 26.

The yen rose versus the dollar as Japan’s exports increased 2.4 percent in September from a year earlier as demand for cars and auto parts advanced. Japanese Finance Minister Jun Azumi and Chief Cabinet Secretary Osamu Fujimura signaled today Japan is ready to intervene in the currency market to stop a yen appreciation to post-World War II highs that may stunt shipments as overseas demand slows.