Forex - Euro loses some strength after Moody's downgrades Allianz
NEW YORK (AFX) - The euro lost a bit of strength in late trade, but remained well-supported nonetheless, after being undermined slightly by news that Mooday's Investors Service downgraded German heavyweight insurer Allianz and its Dresdner Bank unit, dealers said. Moody's Investors Service downgraded the outlook for its ratings on the Allianz Group to 'negative' from 'stable' following the announcement of the group's third-quarter earnings. Moody's said the downgrade reflects the group's weakened earnings and capital position, and losses at Dresdner Bank.
Earlier in the session the euro derived strength from news that Ernst Welteke, president of Bundesbank and an ECB board member, said eurozone inflation is close to target and is expected to fall further in the first half of 2003. Dealers said the remark was received enthusiastically and was widely interpreted as a hint that the ECB may cut rates at its next meeting. They said the dollar today continued to benefit from market perception that many market players have been light on dollars. (...)
