The euro touched a one-month high versus the U.S. dollar on Wednesday after ratings firm Moody’s Investors Service held Spain’s rating a notch above junk grade.
The euro rose to 1.3122 from 1.3051 in North American trade late Tuesday. The shared currency traded as high as 1.3139 in U.S. action, its highest level since Sept. 17, according to FactSet.
Late Tuesday, Moody’s confirmed its rating on Spain, though still with a negative outlook, while a downgrade had been long awaited. That offered some relief to Spanish bonds and stocks, lifting global equities.
S&P also has a negative outlook on Spain’s rating. But Moody’s is willing to give Spain the benefit of the doubt, for now. The agency said it refrained from cutting Spain’s rating due in part to the European Central Bank’s willingness to purchase Spanish government debt through its bond-buying program, dubbed outright monetary transactions, or OMTs.