By Deborah Levine
SAN FRANCISCO (MarketWatch) - The dollar extended losses on Tuesday after Moody's Investors Service said the U.S. runs the risk of losing its triple-A rating unless Congress, during the 2013 legislative session, enacts "specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term." The ICE dollar index DXY -0.51% , a gauge of the greenback's moves against six other major currencies, fell to 80.046, from 80.222 before the report and 80.408 in North American trade late on Monday. The euro EURUSD +0.6155% extended gains to $1.2819 from $1.2764 Monday. The "selloff seems sparked by Moody's comment on a potential ratings downgrade," said David Rodriguez, a currency analyst at DailyFX.
