BERLIN — BERLIN (AP) - The euro hovered a little short of two-month highs against the dollar on Monday, despite a rating agency's downgrade for Irish government bonds, as concern persisted over prospects of slower U.S. growth.
The 16-nation currency slipped as low as $1.2872 before recovering to $1.2970 in morning European trading - up from the $1.2947 it bought in New York late Friday. During Friday's session, the euro briefly topped $1.30 for the first time in two months.
The euro has been weakened this year by concerns over Europe's debt crisis and its implications for growth and banks. The publication of European bank "stress tests" is due on Friday.
Still, successful bond auctions in several countries that have been under intense scrutiny because of their big budget deficits and weak economies have helped shift market focus to a string of disappointing U.S. economic reports.
The euro appeared to shrug off Monday's move by Moody's ratings agency to downgrade Irish government bonds by one notch due to a deteriorating economic outlook, a heavy debt burden and liabilities in the banking system.
In another reminder of the debt crisis, the European Commission had over the weekend postponed conclusion of a review of assistance to Hungary, a European Union member that doesn't use the euro, citing "open questions."
The British pound edged up Monday to $1.5321 from $1.5307. The dollar was up to 86.83 yen from 86.71 yen.
