The euro fell on Wednesday after Moody's said it may downgrade Spain's debt rating, but losses may be contained as investors await more developments about how policymakers will resolve the region's fiscal crisis. Analysts said the Moody's news, while clearly negative for the euro, did not add anything new to the debate on the euro zone's financial woes.
In midday New York trading, the euro was down 0.6 percent against the dollar at $1.3307, off an earlier low of $1.3285 where traders reported sovereign demand for the euro. The euro edged 0.3 percent lower against the Swiss franc to 1.2802 francs, having hit a record low of 1.2758 on trading platform EBS in the wake of the Moody's news on Spain.
The dollar gained 0.4 percent against a basket of major currencies to 79.693, moving away from a three-week low of 78.819 plumbed on Tuesday. The dollar also gained 0.4 percent against the Japanese yen to 83.96 yen.
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