[Goldman Sachs expects U.S. dollar to weaken in 2027] November 14th, Goldman Sachs strategists predict that the U.S. dollar will weaken in 2027 after a "strong but differentiated" performance in 2026. They believe that the three major factors that have previously supported the dollar - inflation, relative resilience to energy prices and booming AI-related investment - will turn into drags. Strategists pointed out in a report on Friday that solid economic activity, rising inflation risks and continued political uncertainty still point to further strength of the U.S. dollar against G10 currencies, but limited differentiation and a higher starting point mean that foreign exchange can only play a supporting role for now. Demand for AI-related assets has boosted the U.S. dollar this year, but has also tied the U.S. dollar more tightly to the performance of cyclical AI stocks, creating risks, the report said. Goldman Sachs expects inflation to slow and the Fed to raise interest rates lower than market pricing, which will put pressure on the dollar, but sticky inflation news may provide bottom support for the dollar for a period of time.