The United States has been put on notice about its credit rating. Even though Congress managed to avert a default by raising the debt ceiling, some credit rating agencies have questions about what’s next. As a result, the US dollar is losing ground to its major counterparts.
US dollar index is lower today following a downgrade from rating agency Dagong. The Chinese credit rating agency has cut the US credit rating from an A to an A-. The move comes as Fitch considers whether or not the United States ought to maintain its AAA rating.
Event though a last-minute deal averted a debt ceiling disaster for the United States, and ended the partial government shutdown, the reality is that there are concerns about what happens next. Indeed, another debt ceiling battle is likely brewing, and there are questions about the long-term fiscal stability of the United States.
The result of these questions and speculations is that the greenback is losing ground right now.
At 8:41 GMT the US dollar index is down to 79.9400 from the open 80.5320. EUR/USD is up to 1.3625 from the open at 1.3534. GBP/USD is up to 1.6060 from the open at 1.5950. USD/JPY is down to 97.9430 from the open at 98.7620.
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