Japan'S Rating Was Downgraded By &Nbsp; The US Dollar To The Yen Rose 0.72% On Thursday.

Beijing time on the morning of January 28th, the rating agency Standard & Poor's announced on Thursday.

However, due to less than expected U.S. economic data released in the same period, the US dollar against the euro is still under considerable pressure.

Later, some comments from European policymakers helped the dollar recover some of the lost territory.

The US dollar against Japanese yen closed at 82.82 yen on Thursday, or 0.72%.

At the close of the foreign exchange market, the US dollar index for tracking six major currencies was 77.71 points, or 0.24%.

The euro rose to 0.19% against the US dollar, while the euro and Japanese yen closed at 113.7040 yen, up 0.91%; and the pound against the US dollar at 1.5937 US dollars, up 0.13% in 1.3729.

Rating agency Standard & Poor's announced Thursday that Japan's AA rated sovereign debt rating would be downgraded to AA-, adding that Japan's political leaders lacked a "viable strategy" to solve the country's debt problem.

The rating adjustment hardly makes it possible for investors to give up the Japanese treasury bonds they hold, because the country's bonds still hold a stable investment grade evaluation, while 95% of Japanese bonds are held by Japanese domestic investors, banks and pension funds.

In a Thursday report, Citigroup analysts pointed out that "this adjustment may lead to regional foreign reserves managers hesitate to invest in yen assets."

But more importantly, the impact of this assessment on market confidence may once again shift the focus to the relatively weak financial situation in Japan.

The number of first jobless claims announced last week before the opening of the US stock market unexpectedly increased significantly; the commerce department data showed that durable goods orders fell by 2.5% in December.

The two group of adverse economic data caused the US dollar to decline further against the euro.

An important ECB official spoke at the annual meeting of the world economic forum in Davos on Thursday, pointing out the real threat of inflation.

Analysts generally believe that this could lead to the tightening of monetary policy by the European Central Bank.

The European central bank governor Tyse also said that central banks will unite to fight inflation and stabilize market expectations.

In other currencies, the Australian Prime Minister announced a one-off tax benefit to help flood affected eastern Australia, which was 99.28 cents lower than the dollar, or 0.56%.

The Australian dollar traded at 82.2237 yen, up 0.153%.

The New Zealand dollar closed at 64.0199 yen, or 0.77%.