A French finance minister said Friday that the ratings agency downgraded the country’s credit rating by one notch. News reports also said that Austria’s triple-A credit rating may also be downgraded Friday.
The euro fell to $1.2670 late Friday, from $1.2827 late Thursday. It fell as low as $1.2623 earlier, its lowest level since Aug. 25, 2010.
A lower credit rating by France could hamper Europe’s efforts to resolve its debt crisis. A lowered credit rating means it could cost more to fund bailouts of heavily indebted countries like Greece.