U.S. Dollar Drops. Tariff and Ratings Fears Are Toxic for the Greenback.

The U.S. dollar was weakening on Monday as the market digested renewed tariff threats and Moody's downgrade to America’s sovereign debt rating.

The U.S. Dollar Index, which tracks the value of the currency against a basket of major peers, was down 0.9% early on Monday.

Apart from the Moody’s downgrade, the dollar was also likely suffering reacting to Treasury Secretary Scott Bessent’s weekend comments that President Donald Trump’s so-called ”liberation day” tariffs—most of which were suspended for 90 days—may be reimposed if countries do not negotiate “in good faith” before the pause expires in early July.