The euro turned negative against the U.S dollar after Fitch downgraded the long-term ratings of Italy and Spain, sapping demand for riskier assets.
Fitch cut Italy's sovereign credit rating by one notch to A+ from AA-. [ID:nWNA0347]
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Fitch cut Spain's credit ratings by two notches, just a few minutes after downgrading Italy, saying the intensification of the euro zone debt crisis has had a negative impact in the entire region. [ID:nWNA0352]
The euro was last down 0.2 percent to $1.3404 , according to Reuters data, erasing earlier gains which had the single-currency hit a session high of $1.3524 prior to the downgrades.
(Reporting by Julie Haviv, Editing by Chizu Nomiyama)