Dollar Does Not Deserve Its 'Very Rich Valuation,' Goldman Strategist Says

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Goldman Sachs 9.0
Investment Bank $2500.00B
Kamakshya Trivedi 9.0

Dollar Does Not Deserve Its 'Very Rich Valuation,' Goldman Strategist Says

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the dollar weakness is a function... the dollar no longer warrants its very rich valuation... we think there is more to go in that... will keep the dollar on the back foot Fed easing, softer US data, less exceptional US economy vs other markets

12/2/2025 3:26:12 PM	medium term cautious down	20 days later	-0.92%	+0.46%
11/12/2025 4:28:43 PM	medium term cautious down	20 days later	-0.33%	+0.17%
10/15/2025 9:58:39 AM	long term cautious down	60 days later	-0.24%	+0.12%
9/29/2025 2:12:26 PM	short term cautious down	6 days later	+0.35%	-0.17%

Questions why guest remains concerned about labor market despite recent market pricing shift.

Host
Kamakshya Trivedi

Sees tentative signals of layoff rate picking up in second-tier and private sector data, wants confirmation in upcoming payrolls report.

Previously had labor market with limited hiring but not much firing concern; watching for substantiation in full dataset.
Asks if labor concerns lead to dollar weakness and what can be done about it.

Host
Kamakshya Trivedi

Dollar weakness due to US economy being less exceptional, rich valuation eroding, Fed easing more in December and next year.

US has softer data and deeper policy easing priced vs other G10 markets (except UK), keeping dollar on back foot.
Asks if Kevin Hassett as next Fed chair would change thesis.

Host
Kamakshya Trivedi

Would add weight to thesis, skewing US rates toward deeper cuts.

Economic weakness, tariff inflation impacts passing, and reshaped Fed push toward weaker rates and softer dollar.
Asks about yen relief and impact of potential BOJ hike in December.

Host
Kamakshya Trivedi

BOJ likely considering December hike as US economy slowing but not collapsing and self-sustaining wage growth emerging.

Expect pushback from administration and BOJ against excessive yen weakening from current levels.
Asks how to play global tariff events through FX and about China investability.

Host
Kamakshya Trivedi

High conviction on CNY appreciation due to trade detente, undervaluation, and strong export growth.

China domestic equities have more upside, supports broader EM; sees opportunities in Brazilian equities and bonds.

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