Goldman Sachs Lifts 12-Month Yen Forecast to 150 Per Dollar
The bank set three-month and six-month targets at 158 and 155 yen per dollar, respectively, as faster Bank of Japan rate hikes and an increased possibility of Japanese domestic funds returning to Japanese assets suppo…
Goldman Sachs raised its 12-month yen forecast to 150 per dollar from 165, reflecting expectations for faster Bank of Japan rate hikes and a possible return of Japanese domestic funds to Japanese assets.
The bank set its three-month target at 158 yen per dollar and its six-month target at 155. The revisions mark a shift from its previous bearish outlook on the Japanese currency.
The outlook is based partly on expectations that the Bank of Japan will increase interest rates more quickly than previously anticipated. An increased possibility that Japanese domestic funds will return to Japanese assets also supports the yen forecast.
The yen may provide protection as recession risk grows.
