Dhaka, Bangladesh (BBN)- The Euro (EUR) came under pressure on Friday after Moody’s Investors Service slashed Ireland’s credit rating by five notches and warned further downgrades if Ireland fails to stabilize its debt situation.
The single currency hit a record low after its launch in 1999 against the Australian Dollar (AUD) and the Swiss Franc (CHF) during the week, a weekly review report said.
The British Pound Sterling (GBP) slipped to a three month low against the Greenback to trade around USD 1.5377 on Wednesday after a downward revision of the U.K. economic growth to 0.7 percent from 0.8 percent.
However, EUR steadied against the USD and the CHF on Thursday, helped by supportive comments from China despite a shaky outlook from the analysts who are expecting fresh losses in 2011.
A Chinese foreign ministry spokeswoman said on Thursday that China would help countries in the Eurozone return to economic health and also would support the International Monetary Fund’s bailout package for the bloc.
Liquidity was at a premium in currency markets ahead of the year-end, with traders saying flows were having bigger impact on price than fundamentals.
The USD held losses against the Japanese Yen (JPY) and remained higher against the EUR on Thursday after the release of US durable jobless claims and personal consumption data.
BBN/SI/AD-24Dec10-3:35 pm (BST)
