Economics
Goldman Sees the Australian Dollar Falling to 72 Cents
- 10-year Treasury yield to hit 3.5% by year end, Moffitt says
- Australian dollar is second-worst performing G-10 currency
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Australia’s dollar is poised to drop another 5 percent this year as the central bank stays on hold while the Federal Reserve keeps raising interest rates, Goldman Sachs Asset Management says.
The Aussie will decline to 72 U.S. cents by year-end as restrained economic growth and inflation mean the Reserve Bank of Australia will take a “few years” to catch up with the Federal Reserve in raising borrowing costs, said Philip Moffitt, Asia-Pacific head of fixed income in Sydney at the firm, which oversees more than $1 trillion.