- The US Dollar Index is under pressure following a credit rating downgrade by Moody’s.
- Moody’s anticipates that US federal debt could rise to about 134% of GDP by 2035, up from 98% in 2023.
- US Treasury Secretary remarked that Trump intends to impose tariffs on trading partners who have not negotiated in “good faith.”
The US Dollar Index (DXY), which gauges the value of the US dollar (USD) against six major currencies, is giving back some gains during Asian trading on Monday, hovering around 100.40.
The credit rating is facing a decline from AAA to AA1 as Moody’s has downgraded the US credit worthiness, following a similar action by Fitch in 2023. The current forecast indicates rising debt retention costs and lower tax revenues.
On a slightly optimistic note, the Greenback is getting some support from renewed hopes of a 90-day US-China trade truce along with potential trade agreements with other nations. Meanwhile, U.S. Treasury Secretary Scott Bescent mentioned on CNN that President Trump is set to impose tariffs on trading partners that he views as not negotiating with integrity.
Recent economic reports suggest a decrease in inflation, as both the Consumer Price Index (CPI) and the Producer Price Index (PPI) indicate reduced price pressures. This could lead to further interest rate cuts by the Federal Reserve in 2025, potentially putting additional downward pressure on the dollar. Moreover, dismal retail sales data adds to ongoing worries about the overall pace of economic growth.
Today’s US Dollar Price
The following table highlights the fluctuations in the US dollar (USD) compared to various currencies, showing that it has been the weakest 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% |
This table outlines the changes in value between the major currencies, indicating how each currency performs against the others. The comparisons provide a clearer view of global currency dynamics.
