Goldman Sachs Forecasts Yen at 165 Per Dollar

Goldman Sachs revised its 12-month forecast for the Japanese yen, predicting it will reach 165 against the US dollar, a significant shift from its previous projection of 155 per dollar. This revised outlook was shared by Kamakshya Trivedi, head of global FX and interest rates at Goldman Sachs, in a discussion with Bloomberg Television.

Trivedi described the current undervaluation of the yen as "really historic," suggesting that market conditions and economic factors have contributed to its weakening against major currencies. The firm's updated forecast indicates an expectation of continued depreciation for the yen over the coming year.

While the specific drivers for this forecast were not detailed in the provided excerpt, such predictions often consider interest rate differentials, trade balances, and geopolitical factors. The yen has experienced considerable volatility, and Goldman Sachs' revision signals a strong conviction in its continued weakening trajectory. The firm's analysis suggests that the current levels represent a significant deviation from historical norms for the currency's valuation.