Goldman Sachs predicts an increase in the dollar's value: reasons behind the forecast.

The American bank Goldman Sachs has revised its forecasts for the US dollar, anticipating a 5% increase over the next year. As noted in the bank's report, this is attributed to the sustained economic growth in the US and the planned implementation of new tariffs which may slow down the easing of monetary policy by the Federal Reserve (Fed). This information was reported by Bloomberg.

"We expect the dollar to rise by approximately 5% over the next year due to the implementation of new tariffs and the continued economic dominance of the US," the bank's strategists wrote in their report.

Goldman Sachs predicts that the euro will fall below parity to 0.97 dollars within six months. The last time such a level was recorded was in 2022, when the energy crisis in Europe triggered an economic downturn. Previously, the bank had forecasted the euro to be at 1.05 dollars.

The forecast for the pound has also been adjusted: a decline to 1.22 dollars is expected over the next six months (previously forecasted at 1.32 dollars). The Australian dollar, according to the bank's estimates, may drop to 0.62 dollars within three months (previously estimated at 0.66 dollars).

Reasons and Outlook for Dollar Strengthening

One of the key factors behind the strengthening of the dollar is the consistent growth of the US economy, as well as a robust labor market, as confirmed by the latest employment report. This bolsters investor optimism regarding the further appreciation of the American currency. According to Bloomberg data, the dollar index has risen by more than 8% since September 2024.

The dollar continues to show dominance in Asian markets. In particular, the currencies of Indonesia and the Philippines have depreciated by 0.5% against the dollar, while the Indian rupee has reached a record low. The Chinese yuan remains weak despite Beijing's efforts to support its rate.