The dollar slipped again Tuesday, weighed down by the Federal Reserve’s caution over the economy while traders considered news of upcoming U.S.-Japan talks.

Treasury yields fall and the dollar is little changed as Monday's "Sell America" trade recedes a bit. Concerns about the U.S. government debt flared up after the Moody's downgrade and the progress of a tax bill in Congress that looks poised to widen the already worrisome budget hole.

On the other hand, Moody’s is far more than a day late and a dollar short. It’s so late in the current movement into over-indebtedness that Moody’s announcement is \quaint—and trivial.

The United States has officially lost its perfect credit rating. On Friday, Moody’s, for the first time in its history, downgraded U.S. government bonds from the gold star rating of “AAA” to “AA1,” the silver medal equivalent.

The U.S. Dollar (DXY) saw a sharp fall on Monday after ratings agency Moody’s decided to strip the U.S. of its last remaining top-tier credit score, raising fears of America’s rising debt burden.  The greenback was last down 0.

DXY rebounds but stays vulnerable as Moody’s downgrade, debt concerns, and rising gold prices challenge the dollar’s reserve currency strength.