Euro Declines After Portugal Moody’s Downgrade; Yen Recovers

The euro halted three days of gains versus the dollar after Moody’s Investors Service downgraded Portugal’s credit rating, reviving concern about Europe’s ability to solve its debt crisis.

The 17-nation common currency depreciated versus all but two its major counterparts after Portugal was cut two steps by Moody’s yesterday to A3, four steps from so-called junk status. Japan’s yen rebounded as Tokyo Electric Power Co. said a containment vessel may have been breached at a crippled nuclear plant. Norway’s krone weakened before the nation’s central bank announces its decision on interest rates.