The yen will weaken to levels last seen more than 30 years ago if the Bank of Japan sticks to its dovish stance, according to forecasters at Goldman Sachs Group Inc.
Over the next six months the yen is projected to reach 155 per dollar — the weakest since June 1990 — according to the bank’s strategists led by Kamakshya Trivedi. They had previously expected the yen to trade to 135.
“As long as the BOJ remains far from hiking rates and equities stay reasonably well supported, the yen should continue to trend weaker,” the strategists wrote in a note dated Friday. Improving US growth outlook was also a factor in their bearish view.
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