The dollar index (DXY00) today slid to a 1-1/2 week low and is down by -0.15%. The dollar remains under pressure after Moody’s Ratings late last Friday downgraded the US government’s credit rating from Aaa to Aa1, citing a ballooning budget deficit and fiscal concerns. The downgrade puts the dollar’s status as a global reserve currency into question and may prompt some investors to lighten up on their dollar assets.
The markets are discounting the chances at 5% for a -25 bp rate cut after the June 17-18 FOMC meeting.
