Euro Falls After Moody’s Downgrades Portugal’s Rating

The euro slipped today after Moody’s cut the debt rating of Portugal, increasing concerns about the financial crisis in the European Union.

Moody’s Investors Service downgraded Portugal’s long-term government bond ratings from A1 today to A3, saying that the nation “faces significant challenges, not least a less supportive economic environment”. The agency assigned a negative outlook because of “subdued growth prospects” and concern that Portugal’s government won’t be able to implement deficit-reduction plans.

EUR/USD dropped from 1.3996 to 1.3923 as of 13:57 GMT today.

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