Euro trims gains after Fitch cuts Ireland rating

LONDON, Nov 4 (Reuters) - The euro trimmed gains against the dollar and the yen while the spread between Irish and euro zone government bond yields widened on Wednesday after ratings agency Fitch cut its sovereign rating of Ireland.

Fitch downgraded Ireland’s long-term rating to ‘AA- ’ from ‘AA+’, with a stable outlook. It said the move reflected the severity of the decline in nominal GDP and the exceptional rise in government liabilities. Click on [ID:nWLA7306]

The euro EUR= briefly fell to around $1.4740 from around $1.4765 before the announcement. By 1119 GMT, it had pulled back to around $1.4750, and traded 0.2 percent higher on the day.

The single European currency EURJPY=R fell to around 133.93 yen, pulling back from the day's high 134.37 yen. Still, the euro traded 0.8 percent higher on the day.

The 10-year Irish government bond yield IE10YT=RR rose, widening the spread against euro zone benchmark German Bunds EU10YT=RR by 2 basis points to 148 basis points after the Fitch news.

Five-year Credit Default Swaps, which price the cost of insuring Irish bonds, widened to 144.7 basis points from 142.4 basis points, monitor CMA DataVision said.

Reporting by London Treasury Team