Goldman Sachs Group Inc. has cautioned that the euro may experience a significant decline against the dollar if Donald Trump and the Republicans win the upcoming US elections. This depreciation is expected to be driven by potential high global tariffs and substantial domestic tax cuts.

The investment bank predicts that the strength of the dollar will be supported by a robust US economy and relatively high interest rates. Additionally, Goldman Sachs suggests that if the election results lead to "much higher" tariffs, the dollar's strength may persist longer than previously anticipated.

The Chinese yuan is also projected to face a potential drop under similar circumstances, highlighting the broader implications for global currencies in the event of a Republican victory.