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Goldman Sachs: Dollar will still be under pressure despite trade deal

Internet reports that the recently reached trade agreement has reduced the uncertainty that has been weighing on the dollar, but there is little room for the dollar to rebound. "Widespread tariff increases will put pressure on the U.S.'s relative prospects, thereby continuing to undermine the strength of the U.S. dollar," Goldman Sachs economists said in a report. Although the agreement with Japan has improved sentiment on Wall Street, Goldman Sachs said it remains to be seen whether Japan's promised $550 billion in investment in the United States can materialize. At the same time, there are doubts about how the cost of tariffs will be apportioned among exporters, importers and consumers.

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