The Economic Information Daily reported on the 25th that Goldman Sachs expects the yen to rise to 150 against the dollar over the next 12 months, reversing its bearish yen stance in July. The dollar-yen pair is currently trading at 158.01.
Goldman Sachs strategist Karen Reichgott Fishman lowered the 12-month forecast for the dollar-yen exchange rate from 165 yen per dollar to 150, while also revising the three-month and six-month forecasts down to 158 and 155, respectively. In her report, she stated that this adjustment mainly reflects the accelerated pace of Bank of Japan rate hikes and the rising possibility of Japanese capital flowing back into domestic assets.
Fishman said that a faster pace of rate hikes weakens the inflationary impact brought by expansionary fiscal policy and also reduces downward pressure on the yen. Although the shift in portfolio capital flows remains speculative, the increasing likelihood poses asymmetric downside risks to the dollar-yen exchange rate.
Previously, Bank of America also raised its yen exchange rate forecast, expecting it to rise to 149 yen by year-end. (rc)
Goldman Sachs strategist Karen Reichgott Fishman lowered the 12-month forecast for the dollar-yen exchange rate from 165 yen per dollar to 150, while also revising the three-month and six-month forecasts down to 158 and 155, respectively. In her report, she stated that this adjustment mainly reflects the accelerated pace of Bank of Japan rate hikes and the rising possibility of Japanese capital flowing back into domestic assets.
Fishman said that a faster pace of rate hikes weakens the inflationary impact brought by expansionary fiscal policy and also reduces downward pressure on the yen. Although the shift in portfolio capital flows remains speculative, the increasing likelihood poses asymmetric downside risks to the dollar-yen exchange rate.
Previously, Bank of America also raised its yen exchange rate forecast, expecting it to rise to 149 yen by year-end. (rc)
