European Woes Persist, Dollar Slips

Italy gets a downgrade and riskier currencies get a haircut - it's time for your FX Fix.

The euro rose after short-sellers got squeezed, but fears about Greece remain. [CNBC]

In case there wasn't enough bad news in the euro zone, Standard & Poor's cut Italy's credit rating. [CNBC]

The Bank of China has halted foreign-exchange trading with European banks due to the debt crisis, Reuters says. [CNBC]

The dollar slid in European trading ahead of the FOMC meeting. [WSJ]

Emerging market currencies are sinking as investors worried about Europe bail out. [FT]

The New Zealand dollar is also taking a hit from Europe. [WSJ]

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