EUR/USD dips to 1.3197 before steadying, presently at 1.3207.
- Irish downgrade reflects the additional fiscal costs of restructuring and supporting the banking system
- Reflects weaker prospects and greater uncertainty regarding economic outlook
- Irish gross govt debt to GDP projected to peak in 2013 at approx 103%
- Outlook for Irish economy is highly uncertain
- Intensification of financial crisis could stall the incipient Irish recovery
