Why does Goldman Sachs expect the US dollar to strengthen further in the near term?

Goldman Sachs expects the US dollar to strengthen further in the near term because the energy-price shock is keeping US yields elevated while economic growth remains relatively resilient; this 'higher-for-longer' yield environment, combined with concerns about the duration of the energy shock, is driving relative returns that support broad dollar strength across Group of 10 currencies.

Which currency pairs does Goldman Sachs strategist Karen Reichgott Fishman identify as top hedges against dollar strength?

Karen Reichgott Fishman identifies long positions in the dollar versus the Swedish krona, euro, and pound as her 'favorite hedges' against dollar strength.

Goldman Sees Dollar Strength as Energy Shock Keeps Rates High

May 12, 2026

Goldman Sachs forecasts dollar strength driven by an energy price shock following Middle East tensions. Rising oil prices threaten persistent inflation, likely forcing the Federal Reserve to raise interest rates next year.

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