Dollar Falls to Two-Week Low Against Yen on U.S. Rating Concern

May 13 (Bloomberg) -- The dollar fell to a two-week low against the yen and declined versus the euro after a Financial Times article said the U.S. AAA credit rating may be at risk.

The dollar dropped for a fourth day versus the yen after the former U.S. comptroller general David Walker wrote in the FT that the U.S. government should create a “fiscal future commission” to rein in the country’s finances because its credit rating may be cut.

“The FT article came as a reminder of the biggest underlying risk for the dollar,” said Osamu Takashima, chief foreign exchange analyst at Bank of Tokyo Mitsubishi UFJ Ltd., a unit of Japan’s biggest bank. “If people start to question seriously the U.S.’s ability to sell growing amounts of debt smoothly, the dollar may be sold to 90 yen and $1.4 per euro.”

The dollar fell to 96.21 yen as of 9:09 a.m. in Tokyo from 96.45 yen yesterday in New York. It earlier touched 95.99, the lowest since April 28. The greenback declined to $1.3688 per euro from $1.3648 yesterday when it touched $1.3707, the weakest since March 23. The euro was at 131.68 yen from 131.63 yen.

The Dollar Index, which the ICE uses to track the U.S. currency against the euro, yen, pound, Swiss franc, Canadian dollar and Swedish krona, traded at 82.093 after falling to 82 yesterday, the lowest since Jan. 9.