Euro falls, dollar rises as Germany enters recession and US debt concerns grow.

The euro fell as Germany entered a recession, while the dollar rose to a two-month high due to safe-haven demand amid concerns about a possible US default. Fitch has put the US's "AAA" debt ratings on negative watch, which could lead to a downgrade if lawmakers fail to agree to raise the debt limit. The dollar has also been supported by a paring of bets for Federal Reserve rate cuts this year, with the economy proving resilient to the effects of the central bank's aggressive tightening campaign until now. The Chinese yuan hit a six-month low due to disappointing economic indicators, while the Australian dollar and New Zealand dollar also fell.