U.S. Market February 22 , 2001

The Yen weakened in late US trading after Japan lost its triple-A credit rating from Standard & Poor's, which cited the country's rising debt and failure to tackle the banking crisis. The Dollar briefly tested above 117.00 level after the downgrade announcement.

Japan's long-term local and foreign currency debt ratings were cut to ``AA+'' from ``AAA''. The Standard and Poor's cut brings its rating in line with Moody's Investors Service, which in November 1998 cut Japan's foreign-currency credit rating one notch to ``Aa1''.

The euro fell to two-month lows against the dollar on concern over the potential fallout from the Turkish devaluation, given European banks' exposure to Turkey. Euro/dollar near two-month lows, drifts around 90.30 cents

Sterling firmed against the euro on Thursday as Turkey's decision to free-float and effectively devalue its currency pressured the single currency.

Four German states on Thursday reported an unexpectedly sharp jump in inflation in February in a development analysts said was likely to reinforce the European Central Bank's wait-and-see interest rate policy.

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