- The American dollar index faces pressure after Moody’s reduced US credit rating on a step.
- Moody’s now projects that the US federal debt will shoot around 134% of GDP by 2035, from 98% in 2023.
- The US Treasury Secretary, Besent, said Trump plans to impose tariffs on business partners who do not meet “good faith.”
The US dollar index (DXY), which tracks the US dollar (USD) against a basket of six main currencies, has backed down its recent profits from the previous session and is being negotiated around 100.40 during the Asian hours of Monday.
The US dollar faces challenges since Moody’s Ratings has reduced the Credit Credit qualification of AAA to AA1, aligning with previous sales of Fitch Ratings in 2023 and Standard & Poor’s in 2011. Moody’s now warns that the federal debt of the US will increase to approximately 134% of the GDP by 2035 98% in 2023. It is projected that the federal deficit will be extended to almost 9% of GDP, driven by the increase in debt service costs, increased rights spending and decreased tax revenue.
However, the dollar received support from a renewed optimism on a 90 -day commercial truce between the US and China and expectations of more commercial agreements with other nations. Meanwhile, US Treasury Secretary Scott Besent told CNN on Sunday that President Donald Trump plans to impose tariffs at previously threatened levels on commercial partners who do not negotiate in “good faith.”
The economic data published last week showed signs of a deceleration inflation, with the consumer price index (CPI) and the production price index (IPP) indicating a deceleration in price pressures. These figures have increased the expectations that the Federal Reserve could cut interest rates even more in 2025, adding to the downward trend over the dollar. In addition, US retail sales data have reinforced concerns about a prolonged period of moderate economic growth.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the weakest currency against the euro.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.74% | -0.63% | -0.35% | -0.17% | -0.35% | -0.27% | -0.40% | |
| EUR | 0.74% | -0.14% | 0.20% | 0.40% | 0.29% | 0.30% | 0.13% | |
| GBP | 0.63% | 0.14% | 0.04% | 0.55% | 0.43% | 0.44% | 0.26% | |
| JPY | 0.35% | -0.20% | -0.04% | 0.20% | 0.18% | 0.29% | 0.02% | |
| CAD | 0.17% | -0.40% | -0.55% | -0.20% | -0.17% | -0.10% | -0.28% | |
| Aud | 0.35% | -0.29% | -0.43% | -0.18% | 0.17% | 0.00% | -0.16% | |
| NZD | 0.27% | -0.30% | -0.44% | -0.29% | 0.10% | -0.01% | -0.18% | |
| CHF | 0.40% | -0.13% | -0.26% | -0.02% | 0.28% | 0.16% | 0.18% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
