Dollar Falls as Standard & Poor’s Puts U.S. on Downgrade Review

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    Dollar Falls as Standard & Poor’s Puts U.S. on Downgrade Review - Businessweek

    July 15 (Bloomberg) -- The dollar weakened against most major peers after Standard & Poor’s Ratings Services became the second ratings company this week to say it may downgrade the U.S.’s top credit grade.

    The U.S. currency dropped against the euro after S&P said there was at least a 50 percent chance it will lower the AAA rating within 90 days, citing the risk of a stalemate enduring beyond any near-term agreement to raise the nation’s debt ceiling. The yen and Swiss franc extended this week’s gains against a majority of their most-traded counterparts as investors sought the safest assets.

    “Uncertainty about the credit rating and debt ceiling talk will continue weighing on the dollar,” said Toshiya Yamauchi, a senior currency analyst in Tokyo at Ueda Harlow Ltd., which provides foreign-exchange margin-trading services. “The dollar is being sold as the market reacted to the S&P headline.”
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