S&P affirms US 'AA+/A-1+' sovereign ratings; outlook remains Stable

Dhwani Mehta FXStreet

The S&P Global Ratings agency affirmed the US 'AA+/A-1+' sovereign ratings while maintaining a ‘Stable’ outlook on steady, albeit high, deficits.

Additional takeaways

Expect US net general government debt to approach 100% of GDP given structurally rising nondiscretionary interest and aging-related expenditure.

Expect the US economy to grow around 2% following a slowdown in 2025 and 2026.

US' outlook indicates fiscal deficit outcomes won't meaningfully improve, but we don't project persistent deterioration over next several years.

Expect US' average annual real GDP growth to decelerate during 2025 and 2026 to 1.7% and 1.6%, respectively.

Market reaction

These above headlines fail to move the needle around the US Dollar (USD) against its major currency rivals. The Dollar Index (DXY) trades flat at 98.18, as of writing.

US Dollar PRICE Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.00%	0.04%	0.06%	0.02%	0.04%	-0.10%	-0.01%
EUR	-0.01%		0.02%	-0.07%	0.02%	-0.07%	-0.11%	-0.02%
GBP	-0.04%	-0.02%		-0.24%	-0.00%	-0.04%	-0.13%	-0.04%
JPY	-0.06%	0.07%	0.24%		0.05%	0.07%	-0.12%	0.01%
CAD	-0.02%	-0.02%	0.00%	-0.05%		0.01%	-0.14%	-0.04%
AUD	-0.04%	0.07%	0.04%	-0.07%	-0.01%		-0.08%	0.00%
NZD	0.10%	0.11%	0.13%	0.12%	0.14%	0.08%		0.09%
CHF	0.01%	0.02%	0.04%	-0.01%	0.04%	-0.01%	-0.09%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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