FX round-up: Euro down after Spain downgrade

Date: Thursday 11 Oct 2012

The euro fell against the dollar on Wednesday after Standard & Poor's downgraded Spain's credit rating, citing concern about the nation's capacity to deal with the current financial crisis.

The single currency fell around 0.1% at $1.2873 in late trading in the US as S&P Spain’s rating cut to just one notch above junk fuelled nerves about Europe's debt crisis and spurred safe haven demand.

The ICE dollar index, which measures the US currency against a basket of six major currencies, rose above the 80-level for the first time in a month, to trade at a high of 80.185. It later traded at around 80.056 versus 79.972 the previous session.

The dollar added to the previous session's gains after the International Monetary Fund downgraded its global growth estimates for 2012 and 2013.

Elsewhere the greenback was hardly changed against the safe haven Japanese yen, changing hands at ¥78.18 from ¥78.25 on Tuesday.

Sterling bought $1.6003 compared to $1.6002 and was little changed against the euro.

The Australian dollar advanced to $1.0228 from $1.0205 previously.


CJ

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