Investing.com - The euro weakened against the yen on Tuesday after the Moody's ratings agency stripped France of its triple-A rating.
In Asian trading on Tuesday, EUR/JPY hit 103.94, down 0.37% and up from a low of 103.80 and off a high of 104.32.
The pair sought to test support at 102.01, Thursday's low, and resistance at 104.33, Monday's high.
Moody's Investors Service earlier said it had cut French sovereign rates to Aaa1 from Aaa, which sent investors ditching the single currency to digest the news.
"France's long-term economic growth outlook is negatively affected by multiple structural challenges, including its gradual, sustained loss of competitiveness and the long-standing rigidities of its labor, goods and service markets," the ratings agency said in a release.
"France's fiscal outlook is uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand, and in the longer term due to the structural rigidities noted above."
The country is also less cushioned from external shocks than in the past, Moody's added.
The euro rose against the Japanese currency earlier ahead of the Bank of Japan's monetary policy meeting later in the day.
The bank may hold benchmark interest rates unchanged, though upcoming elections could see opposition leader Shinzo Abe become the next Prime Minister.
Abe has called for more aggressive policy action and stimulus from the Bank of Japan.
Elsewhere, the euro was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.19% at 0.8039 and EUR/CAD trading down 0.19% at 1.2742.
Later Tuesday, the eurozone of finance ministers will hold talks in Brussels to discuss financial issues in the bloc.
Meanwhile, Germany is to release official data on producer price inflation.
The Bank of Japan is to announce its latest decision on benchmark interest rates.
In Asian trading on Tuesday, EUR/JPY hit 103.94, down 0.37% and up from a low of 103.80 and off a high of 104.32.
The pair sought to test support at 102.01, Thursday's low, and resistance at 104.33, Monday's high.
Moody's Investors Service earlier said it had cut French sovereign rates to Aaa1 from Aaa, which sent investors ditching the single currency to digest the news.
"France's long-term economic growth outlook is negatively affected by multiple structural challenges, including its gradual, sustained loss of competitiveness and the long-standing rigidities of its labor, goods and service markets," the ratings agency said in a release.
"France's fiscal outlook is uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand, and in the longer term due to the structural rigidities noted above."
The country is also less cushioned from external shocks than in the past, Moody's added.
The euro rose against the Japanese currency earlier ahead of the Bank of Japan's monetary policy meeting later in the day.
The bank may hold benchmark interest rates unchanged, though upcoming elections could see opposition leader Shinzo Abe become the next Prime Minister.
Abe has called for more aggressive policy action and stimulus from the Bank of Japan.
Elsewhere, the euro was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.19% at 0.8039 and EUR/CAD trading down 0.19% at 1.2742.
Later Tuesday, the eurozone of finance ministers will hold talks in Brussels to discuss financial issues in the bloc.
Meanwhile, Germany is to release official data on producer price inflation.
The Bank of Japan is to announce its latest decision on benchmark interest rates.