By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The U.S. dollar extended gains against major rivals including the euro in Asian trading hours Tuesday, as some analysts viewed European debt troubles as the immediate concern even after a ratings agency lowered its outlook on U.S. government credit.
The dollar index DXY -0.04% , which measures the greenback against a basket of six currencies traded at 75.55, compared to 75.504 in late North American trading Monday.
Ratings agency Standard & Poor’s cut its ratings outlook on the U.S. to negative from stable on Monday. Read more on S&P outlook move.
But traders bought into the dollar, which advanced on Monday, from 74.867 in late North American trading Friday.
“The underlying concerns are not new by any stretch. Discussions on the U.S. losing its AAA-status have been active for two years, if not longer,” noted currency strategists at RBC Capital Markets on Tuesday.
“While one might suppose that such a move is U.S. dollar negative, it need [not] be so, if it sparks serious concerted movement in Washington toward getting the U.S. fiscal house in order,” they added.
“E.U. sovereign issues are more pressing than are U.S. ones,” they added. Read more about Europe debt woes.
The euro EURUSD +0.0703% traded at $1.4223, down from $1.4233 in late trading Monday when the currency traded amid speculation of a possible Greek restructuring and after an election in Finland highlighted strong support for the anti-euro True Finns party. See real-time currency quotes and tools.
The British pound GBPUSD -0.0738% traded at $1.6249, from $1.6260 in Monday’s trading session. The dollar bought 82.56 yen USDYEN +0.02% compared with ¥82.65 in late trading Monday.
