The US dollar fell in European trade on Tuesday against a basket of major rivals, extending losses for the second straight session and plumbing a two-week trough on concerns about the US financial stability following the credit rating cut.

US President Donald Trump once again called on the Federal Reserve to cut rates soon as a necessary measure to support the US economy against increasing global challenges.

The Index

The dollar index fell 0.4% today to 100.05, the lowest since May 9, with a session-high at 100.58.

On Monday, the index gave up 0.6%, the second loss in three days against a basket of major rivals.

Moodys finally joined Standard Poor and Fitch and downgraded the pristine US credit rating by one notch, pointing to the persistent US budget deficit and higher borrowing costs as reasons for concern.

US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.

Atlanta Fed President Raphael Bostic said earlier this week that hes leaning towards a single interest rate cut this year.

According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.

The odds of a 0.25%% Fed rate cut in July stood at 37%.

Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.

New York Fed President John Williams said he hasnt noticed a sharp decline in US assets, noting the US dollar remains the worlds reserve currency.

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