Goldman Sachs: Dollar may return to its up-and-down trend

The US dollar, which has seen its volatility in international markets decrease in recent weeks, may once again be acting as a risk- on currency. Analysts at US investment bank Goldman Sachs made the assessment.

According to Bloomberg , a report by economists Karen Reichgott Fishman and Lexi Kanter noted that the dollar's safe haven status could weaken.

Factors that could trigger this situation, according to analysts, include trade tariffs, uncertainty about the independence of the US Federal Reserve (Fed), fiscal concerns and possible outflows from US assets.

The dollar's decline following US President Donald Trump's tax threats against trading partners had brought with it comments that there could be a permanent break in the currency's safe-haven status.

Although Goldman Sachs does not expect this transformation to fully materialize, it does predict a fluctuating course for the dollar in the short term.

According to Bloomberg data, the correlation between the dollar and the volatility indicator of G-10 (Group of Ten, which has 11 members, although only 10 countries have a significant place in world markets) currencies is near its lowest levels in the last seven years.

This suggests that the dollar is moving away from its traditional safe haven role and becoming a source of greater volatility in the markets.

Goldman Sachs stated that one of the notable developments of 2025 is that the dollar, along with US stocks, remains under selling pressure.

The report emphasized that the simultaneous decline in stocks, Treasury bonds and the dollar has become "a more worrying signal that the attractiveness of US assets is decreasing."

Bloomberg analysts, on the other hand, assessed the long-term outlook of the dollar negatively, but highlighted the possibility of a short-term recovery following recent declines.