The euro approached a 10-year low against the yen after Standard & Poor’s cut Italy’s credit rating, adding to concern Europe’s debt crisis will raise borrowing costs for the region’s largest economies. The 17-nation shared currency erased a decline versus the dollar as European stocks rose. Greece resumes discussions with creditors today aimed at staving off default. The dollar gained versus most of its major peers before the Federal Reserve’s policy meeting today. South Korea’s won fell to its weakest this year as Asian stocks slumped. The euro was 0.1 percent lower at 104.76 yen as of 9:12 a.m. in London after reaching 103.99 yen, within 0.09 yen of the least since 2001. It was little changed at $1.3680. The dollar traded at 76.59 yen from 76.58. The rating for Italy, which has Europe’s second-largest debt load, was lowered to A from A+, S&P said yesterday in a statement. The firm said Italy’s net general government debt is the highest among A rated sovereigns, and now expects it to peak later and at a higher level than it previously anticipated. To contact the reporter on this story: Garth Theunissen in London at gtheunissen@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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