Goldman Sachs’ Richard Chambers predicts the dollar will continue to weaken as foreign investors increase their currency hedges due to market volatility.
The Bloomberg Dollar Index has fallen over 8% this year—its worst start ever—amid policy uncertainty. Chambers expects reduced foreign demand for US bonds as European investors focus on their home markets, forcing the US to rely more on domestic buyers.
Meanwhile, gold emerges as a key beneficiary as governments worldwide increase borrowing.
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