The dollar index (DXY00) Monday fell by -0.66% and posted a 1-week low. The dollar was under pressure Monday 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 investors to liquidate dollar assets. Monday's drop in the US Apr leading economic indicators by the most in over two years was also bearish for the dollar. Hawkish Fed comments on Monday limited losses in the dollar.
US Apr leading economic indicators fell -1.0% m/m, right on expectations and the biggest decline in over two years.
