Dollar Weakens, Most Treasury Yields Rise After Moody's Cuts US Credit Rating
The dollar weakened and most Treasury yields rose in early Asian trade after Moody's Ratings on Friday downgraded the US credit rating to Aa1 from Aaa. The greenback is expected to weaken early this week, especially against the EUR, GBP and JPY, following the US sovereign credit downgrade, CBA's Global Economics & Markets Research team said in a research report. However, "we do not expect a major decline in the USD as Moody's decision should not affect investors' USD allocations when the other two credit rating agencies downgraded the US in 2023 and 2011," the team added. The ICE USD Index fell 0.3% to 100.77, while the 10-year Treasury yield rose 3 bps to 4.4701%, FactSet data showed.
Source: Dow Jones Newswires