Goldman Sachs: Global interest rate cut cycle benefits the dollar
Analysts at Goldman Sachs said that the downside risk to the dollar posed by the upcoming Fed rate cut was limited because other central banks were also easing policy. In fact, such a synchronized rate cut cycle is usually accompanied by a stronger dollar, foreign exchange analyst Isabella Rosenberg wrote in a note to clients. Her conclusion is based on an analysis of rate cut cycles since 1995 and the degree of policy coordination among developed countries.