Goldman Sachs Revises Yen Forecast Down to 165 per Dollar
Investment bank Goldman Sachs now predicts the yen will weaken to 165 per dollar within a year, citing persistent interest rate differentials.
Goldman Sachs has revised its yen forecast, now expecting the Japanese currency to weaken to 165 per dollar over the next 12 months. The new estimate is more bearish than its previous forecast of 155 and ranks among the most pessimistic on Wall Street.
Yen at 38-Year Low
The revised call comes as the yen slumped to its weakest level against the U.S. dollar since 1986, making it one of the worst-performing major currencies this year. The slide has been driven by the wide interest rate gap between Japan and other economies, particularly the U.S.
- Goldman Sachs now sees yen reaching 165 per dollar in 12 months
- Previous forecast was 155 per dollar
- Yen recently touched its lowest since 1986
- Interest rate differentials remain a key factor
The investment bank's outlook reflects expectations that the Bank of Japan will move slowly in normalizing monetary policy, while the Federal Reserve maintains higher rates. The yen has lost about 12% against the dollar so far this year.