Goldman Sachs Believes Energy Shock Will Sustain High Interest Rates, Driving Dollar Strength

According to a report by Jinse Finance on May 13, Goldman Sachs stated that the U.S. dollar is expected to strengthen further in the short term as energy price shocks keep yields elevated, while economic growth continues to show relative resilience. Goldman Sachs strategist Karen Reichgott Fishman said: "The combination of rising inflation in the U.S. and resilient growth already implies that interest rates will remain 'higher-for-longer.' Any further concerns about the duration of the energy shock should continue to drive relative returns consistent with changes in trade conditions. This scenario should also lead to broad-based strengthening of the dollar against G10 currencies." (Dongxin News Agency)