Goldman Says a Recession Would Cast Doubt on a Strong Dollar
- Dollar currently overvalued by 18%, according to bank
- If recession hits, bank says yen could rally as much as 20%
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While the US dollar typically strengthens when a recession is looming, all bets are off once it hits.
That’s according to Goldman Sachs Group Inc. strategists including Zach Pandl, co-head of global FX and EM strategy, who cited historical data showing a more mixed performance for the greenback during an economic contraction.