Dollar mainly drops, investors eye U.S. debt rating

NEW YORK (AP) - The dollar mostly fell Wednesday on concerns that credit rating agencies will always downgrade U.S. debt, while economic growth is stagnating.Legislators have managed an agreement earlier this week to raise the debt limit and to avoid a failure of the Government. But cuts in spending in the package might not be enough to dispel the concerns of Standard & Poor and other organizations, analysts say.The United States currently holds the top triple-A rating. "" It is now clear to the markets that the current American political state of affairs will not produce a plan of the deficit reduction which is enough for the United States on the road to financial viability, "said analyst for HSBC David Bloom. He added that in view of the emphasis on the reduction of expenditure, it is not likely that lawmakers will do more to ensure the economy moving. This leaves stimulus efforts up to the Federal Reserve.A move by the Fed to restart a program for the purchase of bond to promote economic growth could make the dollar less attractive to investors seeking large returns on their bet. The Fed would aim to promote lending by lowering interest rates. Lower rates tend to weigh on currency.Meanwhile, two other reports published Wednesday on the orders of sector and factories service companies, suggest slowdown in us economic growth is. "Recent data string disappoint us... to highlight the challenges in the restoration of growth in high unemployment, a highly indebted consumers, refusal banks to lend and increasing economic prospects uncertainty,"writes analyst currency Bank of New York Mellon Michael woolfolk." Probably keep the traditional refuge currency - Swiss franc, the Japanese yen and to a lesser extent, the dollar, in demand, he said.Morning trading Wednesday in New York, the euro rose to $1.4307 of $1.4201, even as investors worries about Europe's debt crisis extends to the Spain and the British Italy.The acquired lb to $1.6401 to $1.6297, while the dollar fell to 76.89 Yen yen 77.22 .the ' yen, as the Swiss franc, has gained sharply against the dollar this year investors seek safety in the signs of a slowdown in global growth. The euro and the record hollow affected dollar against the franc Tuesday, while the dollar is circling the war low against the yen.Central Bank of the Switzerland cut interest rates in the country Wednesday to 0, 0 - 0, 25 percent of 0, 0-0, 75% in an effort to curb the rise of the franc.The euro surged higher against the Swiss currency. The dollar initially rose against the franc, but has since ceded most of the gain. It was worth Swiss franc 0.7656 at noon, down 0.7678 Tuesday.In end other trading, the dollar reached 100.97 95.86 cents Canadian cents.