The euro declined to a one-week low against the dollar a day after Portugal became the second nation in the currency region after Greece to receive a junk credit rating from Moody’s Investors Service.
The Swiss franc, yen and dollar rose against most of their major counterparts as Europe’s sovereign-debt crisis and China’s decision to increase interest rates spurred investor demand for haven assets.
The dollar remained lower against the yen after the Institute for Supply Management in Tempe, Arizona, reported that its non-manufacturing Index dropped to 53.3 last month from 54.6 in May. The median forecast of economists was for a reduction to 53.7. Readings greater than 50 signal expansion.
The European Central Bank will increase its main refinancing rate to 1.50 percent tomorrow from 1.25 percent, according to all economists in a survey.