The euro weakened versus the yen, reversing earlier gains, after Standard & Poor’s said a debt- rollover plan for Greece may prompt a “selective default” rating for the country. The 17-nation currency had advanced 0.3 percent earlier against its Japanese counterpart on speculation the European Central Bank will increase interest rates this week. Europe is inching toward a goal of getting banks to replace 30 billion euros ($44 billion) of maturing Greek bonds with new securities. French banks, with the biggest exposure to Greece, worked out a rollover formula that is serving as an example elsewhere. The Swiss franc slipped after retail sales slumped. “Sentiment was undermined with those S&P comments,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London. “Markets are reluctant to aggressively sell the euro, though. They’re talking about a selective default and we need to see what the other rating agencies are going to suggest.” The shared currency fell 0.3 percent to 117.10 yen as of 9:53 a.m. in London, after appreciating to 117.74 yen, the highest level since June 8. The euro was little changed at $1.4525, after advancing to $1.4578, the strongest since June 9. The dollar slid 0.3 percent to 80.62 yen. The Swiss franc declined against all but two of 16 major currencies tracked by Bloomberg after data showed retail sales fell 4.1 percent in May from a year earlier. The Swiss currency has advanced 9.3 percent versus the dollar this year as investors sought it as a haven amid the euro-area debt crisis. Swiss Franc “There is a response to domestic data, undoubtedly,” said Steve Barrow, London-based head of research for Group-of-10 currencies at Standard Bank Plc in London. “The backdrop is not just the euro zone issue and risk, but the specifics of the strength of the franc.” The Swiss currency fell 0.1 percent to 1.2329 per euro and traded at 84.84 centimes per dollar, from 84.78 on Friday in New York. The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, fell 0.2 percent to 74.213 after sliding to 74.111, the lowest since June 10. U.S. financial markets are shut today for Independence Day. To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net. To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.

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