Dollar Falls Following U.S. Credit Downgrade

In the wake of Friday’s move by Standard & Poor’s dropping The U.S. credit rating from the top triple-A level, the U.S. dollar has dropped against most of the major currencies. In early morning trading in New York the buck was down 2.5 percent to the Swiss franc while losing nearly a full percent to the euro. Meanwhile gold broke the $1,700 an ounce mark and by 8:50 am had fallen back to $1,698 an ounce.

“Rising risk aversion has led to more demand for safe- haven currencies, such as the Swiss franc and yen,” said Simon Derrick, chief currency strategist at Bank of New York Mellon Corp. in London. “That’s also helping to offset the negative impact of the U.S. downgrade on the dollar.”

Source: Bloomberg