Goldman Sachs: Asian Currencies Poised to Gain as Central Banks Shift from Dollar

Goldman Sachs says the South Korean won, Singapore dollar, and Chinese yuan could benefit as global central banks diversify reserves away from the U.S. dollar.

In a note led by strategists Danny Suwanapruti and Rina Jio, the bank highlighted mounting interest in non-traditional reserve currencies as dollar dominance gradually declines. While the greenback and the euro still anchor most reserves, Goldman sees room for broader currency inclusion.

South Korea’s won stands out, with the country set to join the FTSE World Government Bond Index next year—likely triggering fresh inflows. Singapore’s AAA-rated currency is already attracting institutional interest, while China’s yuan benefits from deep global trade links.

Goldman notes that diversification away from the dollar is a “firmly entrenched trend” that has built momentum over the past decade and is expected to continue.