The euro is weaker in forex trading this morning (November 20th) following news leading credit ratings agency Moody's has chosen to downgrade France.
Today, the organisation took the major eurozone economy down a notch, reducing its AAA status to AA1 and keeping its negative outlook – which means it could be downgraded yet again in the foreseeable future.
Finance minister Pierre Moscovici said the downgrade would encourage the nation to pursue structural reforms.
Moody's listed the heightened risk of a Greek exit from the single currency, stagnant growth and the chance of France's contribution to rescuing other countries from defaulting on their debts as reasons for the downgrade.
The agency stated: "Rigidities in labour and services markets and low levels of innovation … continue to drive France's gradual but sustained loss of competitiveness and the gradual erosion of its export-oriented industrial base."
At 11:15 GMT, the euro was steady in trading with the dollar, sliding marginally to €1 buying £1.280, while it depreciated by 0.1 per cent versus the pound to £0.804.
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