Experts predict a weak dollar

Analysts at investment bank Goldman Sachs believe that next year, the main event in the foreign exchange market will be the decline in the dollar against a wide range of currencies."It is assumed that in the future, the global economic situation will change somewhat, which, combined with a number of negative medium-term factors, indicates a downward rather than upward trend of the dollar in 2019," the representatives of the financial institution noted."We expect that next year, the growth rate of US GDP will slow down significantly, namely from the current 3.5% to about 1.75%," they added.The reasons for the cooling of the American economy, experts call the deterioration of financial conditions and the exhaustion of the stimulating effect of tax cuts.According to the Goldman Sachs forecast, in the next six months, the EUR / USD pair may reach 1.17, GBP / USD - 1.38, USD / JPY - 110.Ray Dalio, head of the hedge fund Bridgewater Associates, in turn, said that in the foreseeable future, the risk of the dollar to fall in price by 30%.According to him, the reason for the collapse of the US currency could be the further growth of the so-called "triple deficit" of the United States (the budget deficit, the trade balance, and the current account)."As a result, the status of the dollar as the main global reserve currency will be threatened. And then, we may see a strengthening of the positions of other currencies," said Ray Dalio.Lawrence Fink, Chief Executive Officer of BlackRock Inc."Washington's sanctions policy against a number of countries undermines the position of the US currency. However, the main threat to the dollar is still an increase in the US budget deficit," he believes.