Fitch downgrades Icelandic krona

Story link: Fitch downgrades Icelandic krona

The Japanese yen was weaker on Thursday as equities markets gained ground. The yen has risen with the faltering fortunes of equities markets recently as investors rush to decrease their exposure to risky investments. The yen dropped 0.3 percent against both the US dollar and sterling, to ¥117.40 and ¥227.10 respectively, while it fell 0.4 percent versus the euro to ¥155.33.

The greenback was little moved in relation to either the euro or sterling, holding steady against the US currency at $1.9255 and dropping just 0.1 percent to $1.3235 versus the euro.

After the Swiss National Bank raised interest rates by 25 basis points, the Swiss franc gained a bit, adding 0.1 percent to SFr1.6086 against the euro and gaining 0.2 percent against the US dollar, to SFr1.2150. Analysts expect at least one more rate rise in Switzerland this year.

In Iceland, the krona dropped 0.8 percent in relation to the US dollar, to IKr67.90 and fell 1 percent to IKr 89.88 against the euro after Fitch downgraded the nation’s foreign currency debt. The ratings agency said that the Icelandic economy was not healthy enough to weather either higher global interest rates or a long period of risk aversion in global markets.

The Norwegian krone was hurt even though Norway’s central bank raised interest rates to 4 percent and said that it would do so again in the future. The krone dropped 0.1 percent versus the greenback to NKr6.1315, while it was 0.2 percent lower against the euro, to NKr8.1205.