(RTTNews) - In late Asian deals on Wednesday, the yen fell to new multi-day lows against the euro and the Australian dollar as ratings agency Standard & Poor's downgraded its outlook on Japan's sovereign rating in the aftermath of the earthquake and tsunami. Meanwhile, the yen eased from an early Asian session's fresh 1-month high against the US dollar and an 8-day high against the pound. The ratings agency expects costs related to the disasters to increase Japan's fiscal deficit above prior estimates by a cumulative 3.7 percent of GDP through 2013. S&P said that in the absence of fiscal consolidation, public finances are likely to weaken. At the same time, the agency affirmed its long and short-term sovereign credit ratings at AA- and 'A-1+, respectively. The transfer and convertibility assessment was maintained at AAA. The agency said as long as there are no revenue-enhancing measures such as tax increases, reconstruction costs could range from JPY 20 trillion to JPY 50 trillion, with a central forecast of JPY 30 trillion. The yen is now worth 81.87 against the U.S. dollar, compared to a fresh 1-month high of 81.28 hit in early Asian deals. On the downside, 82.4 is seen as the next target level for the yen. At yesterday's close, the dollar-yen pair was quoted at 81.57. Against the euro, the yen is presently trading at a 6-day low of 120.15. The next downside target level for the yen is seen at 120.4. The euro-yen pair closed yesterday's trading at 119.40. Germany's consumer sentiment weakened in April this year, survey results from the GfK Group showed. The overall indicator is forecasting a value of 5.7 points for May, down from 5.9 points in April. The consensus forecast called for a reading of 5.8 points for May. The yen is currently worth 135.10 against the pound, compared to an early Asian session's 8-day high of 134.13. If the yen falls further, it may likely target the 136.0 level. The pound-yen pair was worth 134.44 at yesterday's close. The yen that closed yesterday's trading at 87.92 against the Australian dollar is presently worth 88.65. This set a 15-day low for the Japanese currency and if it weakens further, 90.0 is seen as the next target level. Australia's higher-than-expected first quarter inflation data strengthened the aussie today as speculation increased that the Reserve Bank of Australia will hike its interest rates in the next few months. At present, the yen is trading at 86.15 against the Canadian dollar, compared to yesterday's closing value of 85.70. The next downside target level for the yen is seen at 86.3.

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