Dollar Slips Back In Asia Trading Hours

The dollar slipped against rivals on Thursday, but remained above the 80-point mark after a downgrade of Spanish government debt underscored concerns about Europe’s fiscal health.

The dollar index , which measures the greenback against a basket of six rivals, edged down to 80.009, from 80.058 in late trading the previous session when it moved over the 80-mark for the first time in a month.

At the same time, the euro  recovered a touch to trade at $1.2872, from $1.2869 recorded in late trading Wednesday, when Spain was downgraded to one notch above junk by ratings firm Standard & Poor’s.

“The debt downgrade may on the margin increase the pressure on the Spanish government to request a formal bailout,” said strategists at Credit Agricole.

Danske Bank analysts said that it could also cause volatility to rise and Spanish bonds to come under renewed pressure “as it still remains unclear when (or whether) Spain will ask for a precautionary European Stability Mechanism program.”

The British pound  edged up to $1.6019 from $1.6003 late Wednesday.

The Australian dollar  traded at $1.0279, up from $1.0229, after jobs figures for September showed a larger-than-expected rise in the country’s jobless rate but also showed a bigger-than-expected increase in the number of employed.

Against the Japanese currency  , the dollar dipped to ¥78.01 from ¥78.19.

Marketwatch