Euro Falls to Four-Month Low as Spain’s Debt Costs Rise

The euro fell to a four-month low as Spain’s borrowing costs rose at an auction, stoking concern that the region’s financial contagion is spreading from Greece.

Europe’s shared currency remained lower against most of its major counterparts after Fitch Ratings downgraded Greece’s long-term credit rating to CCC from B-, citing heightened risk that the nation may not be able to sustain membership in the monetary union. The yen extended its gain against the dollar after data showed U.S. jobless claims for unemployment benefits were unchanged last week and another report showed Philadelphia-area manufacturing decreased in May.