Euro Falls After S&P Cuts Spain’s Debt Rating; Yen Strengthens
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The euro dropped to a one-week low against the yen after Standard & Poor’s cut Spain’s credit rating and the nation’s unemployment rate jumped, adding to concern the region’s debt crisis is worsening.
The yen strengthened against all of its major counterparts as investors sought safer assets even after the Bank of Japan expanded its asset-purchase program. The euro erased losses against the dollar after Italy raised 5.95 billion euros ($7.87 billion) through a debt. The dollar weakened before a U.S. report forecast to show growth in the world’s largest economy slowed last quarter.