Euro’s Rally Halted After Greece’s Credit Rating Dropped

The euro halted its rally against the U.S. dollar and the Japanese yen today as the fears that the European debt crisis will spread resurfaced after Moody’s Investors Service reduced Greece’s credit rating.
Moody’s reduced Greece’s credit rating from A3 grade to Ba1 (non-investment) yesterday as the austerity measures, taken by the Greek government to receive the bailout, threaten to cripple the nation’s economic growth. The forecast that the confidence of the German investors may worsen added to the signs of the European economy’s weakness.
EUR/USD traded at about 1.2200 as of 8:54 GMT today after it opened at 1.2218. EUR/JPY dropped to 111.33 from the opening rate of 111.90.

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