Moody's Ratings Downgrade of American Government Credit Rating

Moody's Ratings downgraded the American government's credit rating to Aa1 from Aaa due to a ballooning budget deficit, causing fresh pressure on US assets. Rising Treasury yields could lead to higher debt servicing costs and reduced attractiveness of US equities. Concerns over the dollar's decline, loss of confidence in US policies, and potential negative impact on the economy are also highlighted.

Impact of Federal Reserve's Interest Rates on Dollar Strength

The dollar is rising to its highest level since November, driven by speculation that the Federal Reserve will maintain elevated interest rates compared to other central banks, leading global investors to shift cash to the US for higher bond yields.