By Daniel Tilles
July 27 (Bloomberg) -- The dollar may remain weak until the U.S. economy improves, Goldman Sachs Group Inc. said.
“Cyclically, we are not yet in a situation where the undervalued dollar could perform better,” Thomas Stolper, an economist in London, wrote yesterday in a report. “U.S. demand has to grow more strongly, which we do not expect anytime soon. Once foreign investors believe the rebalancing is well on track, we would expect them to gain more confidence in U.S. assets, and the dollar would naturally re-appreciate.”
Goldman Sachs maintained a bet the euro will rise to $1.45. It gained 0.3 percent to $1.4248 as of 7:06 a.m. in London.
To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net
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