Goldman Sachs: Euro could plunge if Trump wins election

Goldman Sachs warned that the euro could decline by as much as 10 per cent if Donald Trump wins the US presidential election on November 5 and enacts widespread tariffs along with domestic tax cuts.

Analyst Michael Cahill noted that a potential 10 per cent global tariff and a 20 per cent levy on Chinese imports, combined with tax cuts, could lead to a significant rally in the US dollar. The euro is currently trading at $1.083, and such changes could push it below the $1 mark.

Attribution: Reuters

Subediting: M. S. Salama