Weak US dollar reduces debt servicing costs, Moody’s says

"A weaker dollar would support the region's credit conditions by reducing debt-servicing costs for dollar-denominated debt and encouraging capital inflows as Asian assets become relatively more attractive," said Deborah Tan, a Moody's assistant vice president and analyst.

KUALA LUMPUR: A weak US dollar reduces debt-servicing costs for Asian ex-Japan issuers including companies and sovereigns while also encouraging capital inflows, Moody’s Investors Service says.

In its report examining the credit implications of a hypothetical prolonged weak US dollar, it said some market experts have suggested prolonged dollar weakness could be on the horizon.