Goldman Sachs Group Inc. has revised its outlook on the U.S. dollar, predicting a prolonged period of strength driven by anticipated steep tariffs proposed by a former president.

The dollar has been on an upward trajectory since late September, challenging the bank"s previous stance that the currency would gradually decline from its elevated levels.

Currency strategists at Goldman now believe that the new tariff regime will bolster the dollar"s position as the world"s reserve currency, marking a significant shift in their long-held perspective.

This development comes as the financial landscape adjusts to the implications of potential trade policies and their impact on currency valuation.