FXstreet.com (Barcelona) - On Tuesday Fitch rating agency announced that it had downgraded Japan's long-term rating from AA to A+, with a negative outlook.
According to Andrew Colquhoun, Head of Asia-Pacific Sovereigns at Fitch: “The downgrades and Negative Outlooks reflect growing risks for Japan's sovereign credit profile as a result of high and rising public debt ratios. The country's fiscal consolidation plan looks leisurely relative even to other fiscally-challenged high-income countries, and implementation is subject to political risk."
Fitch's announcement caused a spike in USD/JPY to a daily high of 79.85 before it fell again to 79.75.
According to Andrew Colquhoun, Head of Asia-Pacific Sovereigns at Fitch: “The downgrades and Negative Outlooks reflect growing risks for Japan's sovereign credit profile as a result of high and rising public debt ratios. The country's fiscal consolidation plan looks leisurely relative even to other fiscally-challenged high-income countries, and implementation is subject to political risk."
Fitch's announcement caused a spike in USD/JPY to a daily high of 79.85 before it fell again to 79.75.
