Goldman Sachs believes energy shocks will keep interest rates high and push US dollar stronger

On May 13, Goldman Sachs Group said that the US dollar will strengthen further in the short term, as energy price shocks will keep yields high while economic growth still shows relative resilience. Karen Reichgott Fishman, strategist at Goldman Sachs, said: "The combination of rising inflation and growth resilience already means that interest rates will stay 'higher-for-longer.' Any further concerns about the duration of energy shocks should continue to promote relative returns consistent with changes in terms of trade. This scenario should also push the U.S. dollar to strengthen across the board against G10 currencies." (East News Agency)