Goldman Sachs Lifts Dollar-Yen View to 165 in 12 Months as Yen Slump Deepens
Updated
Updated · CNBC · Jul 6
Goldman Sachs Lifts Dollar-Yen View to 165 in 12 Months as Yen Slump Deepens
3 articles · Updated · CNBC · Jul 6
Summary
Goldman now sees USD/JPY at 162 in three months, 163 in six and 165 in 12, reversing earlier forecasts of 160, 158 and 155.
The bank said higher-for-longer U.S. yields, low U.S. recession risk, gradual Bank of Japan tightening and Japan fiscal concerns should keep pressure on the yen.
Last week's four-decade yen low has kept Japan's finance ministry on intervention watch, but Goldman said any market support would likely only briefly interrupt the dollar's rise.
Goldman also cut its euro view to $1.14 in three months and $1.12 in six and 12, arguing AI-led U.S. investment and energy disruptions should keep the dollar broadly firm.
That divergence leaves Goldman favoring the yen as a funding currency for higher-yielding emerging-market trades, while turning more positive on the Indian rupee and Colombia's peso.