Japan Foreign-Rating Downgraded by Fitch, Yen Weakens - 22.5.2012

Fitch Ratings downgraded the sovereign-credit rating of Japan in a surprise announcement as there was limited progress in dealing with the increasing public debt. Japan’s long term foreign currency rating reduced to A+ from AA with a negative outlook. The Yen was under pressure after the announcement of the Fitch and fell against its major counterparties. The US dollar against the Yen rose to the 79.83 level, penetrating the 79.42 resistance earlier today. The Euro versus the Yen rose to 101.93 and found resistance at that level while earlier at the Asia session has been trading at the 101.48.