After the Federal Reserve slashed interest rates, Goldman Sachs is expected to gradually weaken the dollar as yields lose their appeal. Goldman Sachs has instead raised its forecasts for several major currencies, including the euro, sterling and the yen. "We continue to believe that the high valuation of the dollar will not be quickly or easily eroded, but the threshold has been lowered somewhat," Goldman strategists such as Kamakshya Trivedi wrote in the report. Based on its latest forecast for the dollar, Goldman Sachs, which has been bullish on the pound since the start of the year, now expects the pound to hit 1.40 against the dollar within 12 months, up from the previous estimate of 1.32. This is the first time the outlook has reached that level since 2021, and it also ranks among the highest forecasts on Wall Street.