The euro fluctuated against the dollar before European bank stress-test results amid concern the U.S.’s AAA credit rating is at risk. The euro strengthened for a third day against the yen as Italian lawmakers prepared for a confidence vote on an austerity package. Standard & Poor’s said there’s a 50 percent chance the U.S. will lose its top credit rating even if Congress reaches agreement on raising the debt ceiling. The 17-nation currency appreciated 0.1 percent to $1.4163 as of 11:19 a.m. in London, after weakening as much as 0.3 percent, and rose 0.1 percent to 112.07 yen. S&P may lower the U.S.’s long-term rating by one or more notches into the AA category if it concludes Congress and President Barack Obama’s administration haven’t achieved a credible solution to the rising government debt burden and aren’t likely to achieve one in the near future, the company said in a statement dated yesterday. The European Banking Authority will release the results of the stress tests for regional banks as part of an effort to reassure investors that lenders have sufficient capital. The assessments are the first by the EBA since it was set up earlier this year. The results will be published from 5 p.m. U.K. time. The Australian dollar depreciated against all but one of 16 major peers tracked by Bloomberg, falling 0.6 percent against the greenback to $1.0656, after Westpac Banking Corp. became the first among the nation’s four-biggest lenders to predict the central bank will cut interest rates in December. To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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