Euro up as Fitch says France won't be downgraded

AP News
Posted: Jan 10, 2012 3:29 PM
Euro up as Fitch says France won't be downgraded

The euro rose against the dollar after Fitch Ratings said that it won't cut France's top-shelf credit rating this year.

News that France won't lose its prized triple-A rating was a relief to investors. If France were downgraded it could hurt efforts to resolve Europe's debt crisis. A lowered credit rating means it would cost more to fund bailouts of debt-saddled countries like Greece.

"This is seriously good news for the eurozone and removes one of the risks that were weighing on euro-based assets," said Research Director Kathleen Brooks in a note to clients.

Fitch did, however, warn that Italy, Spain, Belgium, Ireland, Slovenia and Cyprus could be downgraded by the end of the month.

The euro rose to $1.2790 late Tuesday from $1.2762 late Monday.

The U.S. currency was lower against most other currencies Tuesday.

The British pound rose to $1.5486 from $1.5450. The dollar slipped to 76.82 Japanese yen from 76.89 yen, to 0.9485 Swiss franc from 0.9506 Swiss franc and to 1.0159 Canadian dollar from 1.0243.

The dollar also fell against the Australian and New Zealand dollar, the Norwegian Krone, the Hong Kong Dollar and the Brazilian Real.