Goldman Sachs: South Korea-US currency discussions reignite concerns about weakening US dollar.

Goldman Sachs strategists Kamakshya Trivedi, Stuart Jenkins, and Teresa Alves wrote in a report that news of discussions between US and South Korean government officials on exchange rate policies this month "has reignited attention on the undervalued appreciation potential of trade surplus currencies in a weakening US dollar environment." They said in the report to clients that this is "because it encourages exporters to convert their dollar holdings into local currency and prompts overseas asset holders to increase their hedging ratios, and policymakers are unlikely to restrict such actions during negotiations."