January 27, 2011
The dollar jumped against the Japanese yen Thursday after ratings agency Standard & Poor’s cut Japan’s credit rating because of the Asian country’s deepening debts, but hit another 2-month low against the euro and lost ground against the British pound.
In morning trading in New York, the dollar rose to 82.89 Japanese yen from 82.45 late Wednesday.
S&P cut Japan’s debt rating to AA-, the fourth-highest level, from AA. Japan’s debt is already twice the size of its GDP and is likely to keep growing over the next decade, S&P said. High debt levels have pushed up borrowing costs for Europe’s most indebted nations and forced a rescue of Greece and Ireland.