MW: Euro extends drop as Greece, Portugal rating cuts
By Deborah Levine
NEW YORK (MarketWatch) -- The euro fell more versus the dollar on Tuesday after Standard & Poor's lowered Greece's ratings to below-investment grade and cut Portugal's long-term ratings by two notches. The euro (CUR_EURUSD 1.3237, -0.0155, -1.1574%) dropped to $1.3272, down from $1.3357 in North American trade late Monday. The dollar index (DXY 81.62, +0.14, +0.17%) , which measures the U.S. unit against a trade-weighted basket of six other currencies, rose to 81.847, compared to 81.388 late Monday. The euro was under pressure earlier and investors dumped the debt of Greece, Portugal, and other European nations seen as facing similar financial problems as Greece. Treasury prices extended gains as the news increased the appeal of the relative safety of U.S. debt. Yields on 10-year notes (UST10Y 3.69, -0.12, -3.10%) , which move inversely to prices, fell 13 basis points to 3.68%.
