“The US dollar’s weakness against its major peers during the first quarter of 2025 is anticipated... to persist,” with GS forecasts of a 10% drop against the euro and 9% declines versus the yen and pound.
The report notes deteriorating sentiment toward US assets due to “consumer boycotts of US goods” and a fall in inbound tourism after tariff announcements, all weighing modestly on GDP.
Foreign central banks are reducing dollar reliance, and Goldman warns private investors may soon follow: “It is possible that the broader policy disruptions and eroded exceptionalism will see private sector investors follow a similar pattern now.”
Tariffs and FX implications:
Goldman notes the nature of current tariffs — broad and unilateral — may shift the economic burden to the US: “US businesses and consumers become the price-takers... it is the dollar that needs to weaken to adjust if supply chains and/or consumers are relatively inelastic in the short term.”
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DXY is a USD index, up
This article was written by Eamonn Sheridan at www.forexlive.com.Hence then, the article about icymi goldman sachs us tariffs may weaken the dollar as growth slows was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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