NEW YORK, July 5 (Reuters) - Moody's Investors Service on Tuesday cut Portugal's credit rating by four levels to Ba2, two notches into junk territory, saying there is great risk the country will need a second round of official financing before it can return to capital markets. STORY: [ID:nWNA2859] COMMENTS: BRIAN DOLAN, CHIEF CURRENCY STRATEGIST, FOREX.COM, BEDMINSTER, NEW JERSEY: "This renews the question of whether not just Greece but the other peripherals are likely to need more bailouts. These issues were not extinguished last week. There was a nice dose of water poured on them but they are still smoldering, and this is like adding gasoline to those smoldering ashes. The euro could drop below $1.44, though it may have to wait until after the ECB meeting." MARKET REACTION: STOCKS: U.S. stock indexes edged lower BONDS: U.S. bond prices were little changed FOREX: The dollar gained against the euro ((Americas Economics and Markets Desk; +1-646 223-6300)) Keywords: USA ECONOMY/INSTANTPORTUGAL