Goldman Sticks With Strong Dollar Call on Outlook for Rate Moves
- U.S. bank predicts three U.S. interest-rate increases in 2016
- Dollar gains versus most major peers including euro, yen
Is the Dollar Rally Over?
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Goldman Sachs Group Inc., one of the world’s top 10 foreign-exchange traders, is holding fast to its bullish-dollar stance, unmoved by the currency’s recent slide.
A gauge of the U.S. currency advanced for a second day, paring a 3.6 percent drop in March that would be the measure’s worst monthly performance since April 2011. Economists at Goldman predict stronger economic outcomes will force the Federal Reserve policy makers to raise interest rates three times this year, supporting the greenback further. The central bank signaled last week it plans two interest-rate increases by Dec. 31, prompting banks such as Morgan Stanley to highlight the risk of near-term dollar weakness.