Goldman Sachs Warns: The Dollar Could Crash — Here’s Why

💸 Goldman Sachs Thinks the Dollar’s Glory Days Are Numbered

Is the world’s most powerful currency about to take a fall?
Goldman Sachs thinks so — and they’re not mincing words.

In a bombshell research note, the investment bank forecasts a 10% drop in the dollar’s value over the next 12 months. Against the euro, yen, and pound, the greenback is about to lose some serious weight.

📉 What’s Driving the Dollar Down?

1. The U.S. Economy Is Slowing

Growth is cooling. American firms are under pressure. Tariffs are biting into margins. That sweet spot of “U.S. assets = safe haven” is starting to crack.

“If tariffs weigh on U.S. firms’ profits and consumer incomes, they can break the central pillar of dollar strength.”
— Michael Cahill, FX strategist at Goldman Sachs

2. Trade War Vibes Are Back

Broad, unilateral tariffs are back on the table. And this time, the world’s not playing nice.

U.S. buyers are stuck paying higher import prices. Foreign producers? Less likely to offer discounts. That imbalance means the dollar has to drop to reset trade flows.

📊 The Forecast: 10% Drop Incoming

Goldman expects the dollar to fall:

• ~10% vs the euro
• ~9% vs the yen and the pound

And this isn’t a short-term correction. It’s a structural readjustment — a potential rebalancing of the global financial system.

🌍 Why It Matters Globally

The U.S. dollar is the spine of the modern financial order. It’s how oil is priced, how countries borrow, and how reserves are held.

A dollar drop could mean:

• 🚨 Higher inflation in the U.S. (imports get pricier)
• 💥 EM market volatility (they hold dollar debt)
• 🔄 Shift toward alternative reserves (gold, digital currencies, even yuan?)

🧠 TL;DR

• 📉 Goldman Sachs sees the dollar falling ~10% in the next 12 months
• 📦 Tariffs + slower growth = pressure on U.S. firms and trade balance
• 🧮 Currency rebalancing is already underway — and the dollar might be the next domino
• 🌎 Global markets will feel it — especially those holding dollar debt or pricing in dollars

The dollar isn’t dead. But it’s definitely wobbling.
And when Goldman starts sounding the alarm, you’d better believe the market’s listening.