Euro Declines for Second Day After Spain Credit Rating Lowered
Oct. 14 (Bloomberg) -- The euro declined for a second day against the dollar and yen after Spain's credit rating was cut by Standard and Poor's, increasing concern that leaders are struggling to stop the region's debt crisis spreading.
The 17-nation currency pared its first weekly advance in a month against the dollar as S&P lowered Spain's grade on long- term sovereign debt to AA- from AA with a negative outlook. The dollar and yen gained against most major peers as investors sought the safest assets amid concern Europe's turmoil will infect the global economy.
The downgrade will "keep the pressure on the negative aspects of the European story," said Imre Speizer, a strategist in Auckland at Westpac Banking Corp., Australia's second-largest lender. "It's clearly a negative for risk sentiment. The euro had a decent drop. A month out and longer, I see it below $1.3150."
The euro declined 0.3 percent to $1.3735 as of 8:06 a.m. in Tokyo from $1.3777 in New York yesterday, paring this week's advance to 2.7 percent. The common currency weakened 0.3 percent to 105.63 yen after falling 0.6 percent to 105.95 yesterday. The dollar traded unchanged at 76.90 yen.
To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net Kristine Aquino in Singapore at kaquino1@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
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