An ETF tracking the U.S. Dollar Index is down about 7% from its July high on further quantitative easing from the Federal Reserve and Moody’s warning it may downgrade the U.S. credit rating.

The U.S. Dollar Index is down to its lowest level in four months. The Fed announcing QE this week and the possible downgrade from Moody’s has bearish implications for the greenback and has set the tone for PowerShares DB US Dollar Index Bullish ETF (NYSEArca: UUPgoing forward.

The currency ETF is off 2% this week. UUP follows the movement of the dollar against a basket of currencies.

“A fiscal cliff and another downgrade [are]not dollar-positive,” Kathleen Brooks, research director at, said in a report. [Currency ETFs Caught in EuroZone Concerns]

Moody’s Investor Service announced that the United States is at risk for losing its triple-A rating by 2013, reports Deborah Levine for MarketWatch.

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