Fitch downgrade the credit rating of the United States causing the US currency to fall


The US dollar fell on Wednesday, after Fitch’s decision to downgrade the credit rating of the United States raised questions about the country’s fiscal outlook, but got some support from a series of relatively strong economic data.

On Tuesday, Fitch Ratings downgraded the United States to AA+ from AAA, in a move that sparked angry reactions from the White House and surprised investors, especially as it comes two months after reaching a solution to the debt ceiling crisis.

That pushed the dollar lower, against the euro’s rise to about $1.10.

The single European currency rose in the latest trading by 0.11% to reach $1.0996, after earlier touching its highest level in the session at $1.1020.

The British sterling pound rose 0.05% to $1.2782, while the US dollar index rose, in the latest trading, by 0.09%, to reach 102.09 points, after falling significantly in the wake of Fitch’s decision.

The US dollar also got some support from economic data released on Tuesday, which showed that employment opportunities in the United States remained at levels consistent with tightening labor market conditions, even as they fell to the lowest level in more than two years in June.

The Japanese yen rose 0.1% at 143.21 per US dollar, erasing some of its gains made earlier on Wednesday morning.

The Australian dollar also rose 0.12% to $0.6621, compensating for some of the losses incurred, after a sharp decline of 1.57% in the previous session, after the Reserve Bank of Australia kept interest rates unchanged on Tuesday.

The New Zealand dollar fell 0.23% to $0.6136, after data showed on Wednesday that the country’s unemployment rate reached its highest level in two years in the second quarter.

In conjunction, gold prices rose on Wednesday, after the decline of the dollar and US Treasury bond yields, following Fitch’s decision to downgrade the credit rating of the United States, which undermined confidence in the US economy, before the release of important data expected this week.

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