Euro Goes Down as Moody’s Cut Spain’s Rating

The euro slipped today after Moody’s Investors Service cut Spain’s credit rating, strengthening the fears of the European sovereign-debt crisis.

Moody’s downgraded Spain’s debt rating to Aa2, following the decrease of Greece’s rating earlier this week. Moody’s also put the outlook for Spain’s rating to “negative”, hinting that another cut is possible. The European leaders will meet tomorrow and they should decide the way to deal with the crisis by March 25.

EUR/USD dropped from 1.3908 to 1.3827 as of 11:30 GMT today.

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