Euro Weakens After Fitch Warns of Downgrade for France, Italy
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The euro dropped against the majority of its most-traded counterparts as concern increased that the region’s leaders won’t be able to contain the sovereign-debt crisis after Fitch Ratings put France on negative outlook and said six other European nations may be downgraded.
The 17-nation currency erased earlier gains against the dollar as Fitch revised its outlook on the ratings of Belgium, Spain, Slovenia, Italy, Ireland and Cyprus to negative, and said France is more exposed to the crisis than other top-rated euro-zone countries. Canada’s currency fell, erasing earlier gains, as European ratings concern damped demand for higher-yielding assets.