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.

Strength of the Dollar as the World's Reserve Currency

The article discusses the recent rally in US risk assets and the strength of the dollar as the world's reserve currency, highlighting factors such as US economic resilience, productivity growth, technological prowess, and strong returns on US assets. Dollar strength is attributed to longer-term macro factors rather than short-term cycles.