The U.S. dollar rose against most major currencies in late New York trading on Friday as the euro was struck by the downgrade of Ireland's credit rating.
Moody's slashed Ireland's credit rating by five notches to Baa1 from Aa2 on Friday and warned further downgrades could follow if Ireland was unable to stabilize its debt situation.
The euro slumped to a two-week low around 1.3130 against the dollar, with key support seen around 1.3105, its 200-day moving average. Traders said that a break below could see the pair retest the 1.30 level and slide toward its December low of 1.2970.
European Union leaders Friday agreed at a summit to try to lengthen the maturities of new sovereign bond issues, and confirmed that private investors will be involved in the future euro zone rescue mechanism.
Against the yen, the dollar was flat at 84.06 in most of trading session, unable to break above 84.50 since late November.
In late Friday trading, the dollar bought 83.90 Japanese yen, comparing with 84.12 late Thursday, and the euro fell to 1.3178 dollars from 1.3215.
The British pound also fell to 1.5514 dollars from 1.5606. The dollar rose from 0.9663 to 0.9684 against Swiss francs, and also rose to 1.0107 Canadian dollars from 1.0059.
Moody's slashed Ireland's credit rating by five notches to Baa1 from Aa2 on Friday and warned further downgrades could follow if Ireland was unable to stabilize its debt situation.
The euro slumped to a two-week low around 1.3130 against the dollar, with key support seen around 1.3105, its 200-day moving average. Traders said that a break below could see the pair retest the 1.30 level and slide toward its December low of 1.2970.
European Union leaders Friday agreed at a summit to try to lengthen the maturities of new sovereign bond issues, and confirmed that private investors will be involved in the future euro zone rescue mechanism.
Against the yen, the dollar was flat at 84.06 in most of trading session, unable to break above 84.50 since late November.
In late Friday trading, the dollar bought 83.90 Japanese yen, comparing with 84.12 late Thursday, and the euro fell to 1.3178 dollars from 1.3215.
The British pound also fell to 1.5514 dollars from 1.5606. The dollar rose from 0.9663 to 0.9684 against Swiss francs, and also rose to 1.0107 Canadian dollars from 1.0059.
