(RTTNews) - Wednesday in Asia, the euro recovered slightly from a fresh record low against the Swiss franc and a 3-week low against the yen and the dollar as most Asian stocks rose amid hopes of a sustained U.S. economic recovery.
Thus far, Japan's Nikkei 225 index gained 0.2%, Hong Kong's Hang Seng rose 0.6%, New Zealand's NZX 50 index advanced 0.1% and Taiwan's main index soared 0.4%. Australia's S&P/ASX 200 index and the All Ordinaries index climbed 0.2% each.
The euro tumbled yesterday after two major credit rating firms said they have decided to downgrade the credit ratings of Greece and Portugal, respectively.
Ratings agency Moody's said Portugal's ratings could be lowered by a "notch or two" if the country's debt affordability deteriorates or the economic outlook worsens due to austerity measures.
Also, crisis-stricken Greece received a fresh warning to its credit rating in another blow to Athens' efforts to claw its way back to solvency. Fitch Ratings placed Greece's BBB- rating on Rating Watch Negative, meaning a downgrade to "junk" status is likely.
The euro gained against the US dollar in Asian deals on Wednesday. The euro-dollar pair is currently worth 1.3142, up 0.5% from a 3-week low of 1.3075 hit yesterday. If the euro advances further, it may likely target the 1.319 level. The euro-dollar pair closed Tuesday's New York session at 1.3099.
The euro that declined to a fresh record low of 1.2535 against the Swiss franc in early Wednesday Asian deals at 6:25 pm ET recovered slightly thereafter. The euro-franc pair is presently worth 1.2574, compared to Tuesday's close of 1.2557. The next upside target level for the euro is seen at 1.264.
After a brief slide, the euro advanced against the pound in early Asian deals on Wednesday. As of now, the euro-pound pair is worth 0.8485 with 0.852 seen as the next upside target level. At yesterday's close, the pair was quoted at 0.8470.
The euro rose against the yen after touching a 3-week low of 109.57 in early Wednesday Asian deals at 6:15 pm ET. The euro-yen pair that closed yesterday's trading at 109.70 is now worth 110.05. If the euro rises further, it may target the 110.5 level.
The Bank of Japan said in its monthly report today that "Japan's economy still shows signs of a moderate recovery, but the recovery seems to be pausing".
German import price index for November and IFO business climate index for December, U.K. final third quarter GDP and the Bank of England's December meeting minutes are expected to influence trading in the upcoming European session.
