Recuperating the slender losses, Euro has today inched up, reviving its conditions from the cut to Spain's sovereign debt rating. But as the downgrade tinted flaws in several euro zone countries already suffering from debt tribulations, the currency still lingered on the back foot.

The demand of higher-risk currencies was capped down by China's admonition that the worldwide economy remained susceptible to sovereign debt risks; yet, given the market holidays in London and the United States, the investors were wary of taking on big positions.

A similar move was followed by S&P last month as that of Fitch ratings agency for the downgrade of Spain, and since this move was already expected by many analysts, there was limited reaction from the currency markets.

Due to the structural crisis still prevailing in euro zone nations accompanied by its dramatic tumble, it is poised that euro will be in more losses. The regional investors are expected to be kept on a bundle of nerves as there are qualms about the scope of the debt calamity.

"I wouldn't draw the conclusion that because the markets didn't react to the downgrade that the pressure isn't to the downside on the euro. We don't have a solution for the debt crisis right now. The pressure on the euro will remain", said Lutz Karpowitz, Currency Analyst at Commerzbank in Frankfurt.