Analysis of USD Valuation Concerns and Recent DXY Decline (Dec 2025)

This analysis is based on the Bloomberg Brief (via YouTube) [1] report from December 3, 2025, where Goldman Sachs Chief FX and EM Strategist Kamakshya Trivedi argued the U.S. dollar does not merit its “very rich valuation.” Concurrent market data [0] shows the U.S. Dollar Index (DXY) declined 0.42% to 98.94 as of 12:02 pm GMT-5 on the same day, extending its losing streak to 7 consecutive days—the longest such streak since July 2020. The timing of Trivedi’s comment, from a major financial institution, aligns with a period of sustained downward momentum for the USD, suggesting the overvaluation narrative may be amplifying existing market sentiment.

1. The DXY’s 7-day losing streak marks a rare extended period of USD weakness not seen in over 5 years, indicating a potential shift in short- to medium-term market dynamics [0].
2. Trivedi’s assessment, as a prominent strategist at Goldman Sachs, carries significant influence in foreign exchange markets and could contribute to further downward pressure on the USD if the overvaluation argument gains broader acceptance [1].

: Continued USD depreciation if the overvaluation narrative persists and more market participants adjust their positions [0][1]. This could impact USD-denominated assets and international trade dynamics.
: Potential advantages for investors in non-USD currencies, emerging markets, or assets that typically benefit from a weaker USD [0]. However, currency markets are influenced by multiple factors (interest rate differentials, economic growth, geopolitical events) that could counteract current trends.

On December 3, 2025, Goldman Sachs’ Kamakshya Trivedi stated the U.S. dollar is overvalued on Bloomberg Brief [1]. The DXY fell 0.42% to 98.94 on the same day, extending its 7-day losing streak (longest since July 2020) [0]. These developments highlight potential concerns about the USD’s near-term valuation and market sentiment, though broader macroeconomic factors will continue to shape its trajectory.