Downgrade of Ireland’s Credit Rating Makes Euro Weaker

The euro dropped today as the European sovereign-debt crisis continues undermine the confidence in Europe’s economy and after Ireland’s credit rating was downgraded.

The Dollar Index, which tracks the US currency versus the currencies of six biggest US trading partners, rose 0.1 percent to 80.099. Fitch downgraded yesterday Ireland’s credit rating from A+ to BBB+. The President of the European Central Bank
Jean-Claude Trichet and the ECB Governing Council member Miguel Angel Fernandez Ordonez will speak to reporters in Madrid today.

Fitch stated:

The downgrade reflects the additional fiscal costs of restructuring and supporting the banking system. Ireland’s sovereign credit profile is no longer consistent with a high investment grade rating.

EUR/USD dropped from 1.3261 to 1.3238 on the yesterday’s trading session and traded at 1.3242 as of 02:51 GMT today. EUR/JPY fell from 111.44 to 110.84 yesterday and traded today at about 110.88.

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