Euro was dumped due to investors’ fear

The U.S. dollar traded mixed against major currencies in late New York trading on Monday, as the euro was dumped due to investors’ fear of further downgrading on eurozone countries’ sovereign credit rating.

Moody’s Investors Service said on Monday it might cut the ratings on some Spanish banks following its multi-notch downgrade of Ireland’s credit rating last week. Speculation had risen that France and Belgium might also face possible cuts.

The euro broke below its 200-day moving average around 1.3102 against the dollar on Monday, usually a bearish signal. The next downside target would be 1.30, followed by the December low of 1. 2970, traders said.

Analysts said the euro would likely continue to struggle until European officials clarify how they will address funding and liquidity problems in the region’s troubled economies.

In late Monday trading, the dollar bought 83.79 Japanese yen, comparing with 83.90 late Friday, and the euro fell to 1.3116 dollars from 1.3178.

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