Goldman Sachs: Global rate-cutting cycle favours the dollar

Analysts at Goldman Sachs Group said the upcoming Federal Reserve rate cut poses limited downside risk to the dollar, as other central banks are also easing policy. Foreign exchange analyst Isabella Rosenberg wrote in a report to clients that in fact such synchronised rate-cutting cycles are usually accompanied by a stronger dollar. She based her conclusion on an analysis of the rate-cutting cycles since 1995 and the degree of policy synergy among developed countries.