Euro Drops as Moody’s Cuts Ireland’s Credit Rating

The euro went down today after Moody’s Investors Service downgraded Ireland’s credit rating, fueling worries that debt problems will cripple the peripheral economies of the European Union.

Moody’s lowered Ireland’s rating by two notches from Baa1 to Baa3, one notch above the so-called “junk” status. The reasons for the downgrade were the weaker economy of the nation and the rising borrowing costs. Standard & Poor’s said that Greece would face default if it wouldn’t restructure its debt.

EUR/USD fell from 1.4487 to 1.4416 as of 13:04 GMT, today while EUR/JPY dropped from 120.96 to 119.80, after rising earlier to 121.47.

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