Goldman Sachs said that due to the U.S. dollar's "privilege" as the world's reserve currency, the value of the U.S. dollar typically rises as U.S. Treasury bond issuance increases, Goldman Sachs reported. Isabella, a macro strategist at Goldman Sachs, wrote that there is a "significant" positive relationship between U.S. Treasury issuance and the nominal trade-weighted value of the dollar, controlling for other factors, but not for the euro, This is a classic example of the excessive privilege of the dollar. Isabella said the dollar benefits from steady foreign demand for U.S. assets. Finally, she believes that bond issuance is a secondary factor driving the dollar's performance this year compared to the Fed's interest rate cuts.