The buzz around possible U.S. currency intervention is growing louder as Goldman Sachs Group Inc. has now weighed in on an idea that has been making the rounds on Wall Street.
President Donald Trump's repeated complaints about other countries' foreign-exchange practices have "brought U.S. currency policy back into the forefront for investors," strategist Michael Cahill wrote in a note Thursday. Against a fraught trade backdrop that has created the perception that "anything is possible," the risk of the U.S. acting to cheapen the dollar is climbing, he said.
The U.S. last intervened in FX markets in 2011 when it stepped in along with international peers after the yen soared in the wake of that year's devastating earthquake in Japan. That effort buoyed the dollar. However, more analysts in recent weeks have been contemplating the wild-card notion that the U.S. could forcibly weaken the dollar. The U.S. hasn't taken that step since 2000.
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