Catenaa, Thursday, May 01, 2025-A Goldman Sachs analyst issued a stark forecast for the US dollar, warning its weakening trend will persist as BRICS nations pursue financial diversification.
Kamakshya Trivedi, Head of Global FX at Goldman Sachs, said Thursday the US dollar’s decline is “here to stay,” citing shifting geopolitical dynamics and emerging economies’ growing focus on self-interest. His comments follow a rough year for the greenback, which fell nearly 9% year-to-date, with the DXY index slipping below 100 to 98.06.
“The US dollar weakness is here to stay. It’s going to persist, and it’s going to deepen,” Trivedi said. He emphasized that while BRICS currencies alone may not dethrone the dollar, other major currencies such as the euro and Japanese yen are poised to gain ground.
Trivedi predicted the euro and yen could rally sharply if US labor market data weakens, noting the currencies’ status as traditional safe havens. “It’s going to be the euro or the yen in the lead,” he said, adding that the euro could surge back to the low 130s if economic pressures mount in the United States.
BRICS nations, comprising Brazil, Russia, India, China and South Africa, have accelerated efforts to reduce reliance on the dollar, introducing new payment systems and reserve strategies. While their moves intensify de-dollarization trends globally, Trivedi maintained that the real pressure will come from established currencies rather than new entrants.
