Goldman Sachs analyst predicts dollar decline

8 October 2010

An analyst at Goldman Sachs has forecast that the value of the US dollar is set to drop over the course of the next 12 months.

Goldman Sachs employee Thomas Stopler made the prediction as the Federal Reserve is said to be considering another round of quantitative easing (QE) in a bid to strengthen the economy, reports the Daily Telegraph.

"More QE is seen as a co-ordinated effort to get the dollar lower," said Mr Stolper.

"It makes sense for the US."

The bank's report forecasts that the dollar will stand at $1.50 against the euro in six months' time and $1.55 in a year.

It also expects it to drop against the pound to $1.85 in 12 months' time, with its value currently standing around the $1.58 mark.

Earlier this week, the Financial Times reported that Goldman Sachs is set to record disappointing third quarter results, with analysts predicting the lowest earnings per share at the bank since November 2008.

By Gary Cooper

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