Goldman Sachs Warns of Continued U.S. Dollar Decline Amid Foreign Investor Concerns
Goldman Sachs predicts a prolonged downturn for the U.S. dollar as the greenback suffers its steepest monthly drop since late 2022, plummeting 4.5% in April alone. Year-to-date losses exceed 8% against major currencies, raising alarms about a potential 2025 dollar crisis.
The bank’s chief economist Jan Hatzius highlights growing risks of foreign investors abandoning U.S. assets during the economic slowdown. market watchers are now scrutinizing capital flows for signs of accelerated divestment from dollar-denominated holdings.