Outlook for US dollar assets remains stable for now, but investors must watch the market: MAS chief
[SINGAPORE] The outlook for US dollar assets remains stable for the moment although in the near term, the market bears watching, said Monetary Authority of Singapore (MAS) chief Chia Der Jiun at the Qatar Economic Forum on Tuesday (May 20).
Earlier on May 16, Moody's had downgraded the US' credit rating from 'AAA' – the highest rank for credit reliability – to 'AA1', citing rising fiscal deficits and higher interest payments. Moody's was the last agency to have a triple A rating on US credit.
Together with the US dollar weakening this year and 30-year yields on US debt rising, there have been questions over whether US assets are still a safe haven, noted the Bloomberg moderator at the forum.
MAS said that Chia had made the following three points at the Qatar Economic Forum:
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