Euro Declines as Downgrade Risks Point to Region’s Debt Crisis
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The euro weakened on speculation some European nations will struggle to raise funds amid the region’s debt crisis after rating companies downgraded the creditworthiness of two state-controlled Irish banks.
The single currency depreciated versus 15 of 16 major counterparts, falling to two-week lows against the dollar and the yen. Costs to insure French government debt rose to a record, indicating the nation may be at risk of losing its top rating. The Swiss franc climbed to a euro-era record on haven demand.