LONDON—The euro dropped on Thursday as Europe’s largest economy Germany was confirmed to be in a recession, while the dollar hit a two-month peak, benefitting from safe-haven demand as worries mounted about a U.S. default.
The latest concern was raised by ratings agency Fitch, who put the United States’ “AAA” debt ratings on negative watch, a precursor to a possible downgrade should lawmakers fail to agree to raise the debt limit.
