The US Dollar Index is losing its creditworthiness and its safe-haven status. Moody’s only confirmed what several analysts have long predicted since the Trump administration went all-in on tariffs. The US Dollar is no longer stable, and it is only a matter of time before that translates into the DXY.

Rising debt and interest payment ratios over more than a decade, to levels higher than other nations', prompted the downgrade, Moody's said.

The US downgrade has resulted in a sharp decline in the US Dollar (USD). The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, plummets to near 100.20.

Moody's has joined the two other rating agencies in determining that the US is no longer fit to hold a AAA credit score.

Moody's downgraded the U.S. sovereign rating from 'Aaa' to 'Aa1', sparking concerns over the increasing national debt. This development influenced U.S. stock index futures and Treasury yields, further affecting the market as major stocks trended lower.

Following Moody's Ratings' downgrade of the US credit rating, Donald Trump's team has targeted Mark Zandi, chief economist at Moody's Analytics, for blame. Trump's spokesman, Steven Cheung, dismissed Zandi's economic analysis,

Investors faced yet another bumpy start to the trading week with US assets coming under fresh pressure, although it’s mounting concern over American debt rather than tariffs generating volatility this time.