Goldman sees further gains in US$ despite bad 2017 start

Singapore

THE dollar's worst start to the year in more than a decade is just a blip on its path to further gains, according to Goldman Sachs Asset Management, which oversees more than US$1 trillion.

The money manager is betting on the greenback and a steeper yield curve as a reflationary era takes hold in the US and other countries, said Philip Moffitt, the Sydney-based Asia-Pacific head of fixed income. The dollar will continue to strengthen against the euro and yen as policymakers in Europe and Japan maintain quantitative easing, while the US Federal Reserve is set to raise interest rates about three times this year.