Goldman Sachs Boosts Yen Forecast to 150 Per Dollar

Goldman Sachs has upgraded its forecast for the Japanese yen, anticipating it will strengthen against the US dollar in the coming months. The bank now expects the yen to reach 150 per dollar within a year, up from its previous estimate of 165.

This revised outlook is based on expectations that the Bank of Japan will increase interest rates more quickly than previously anticipated. Additionally, there's a growing possibility that Japanese domestic funds will return to investing in Japanese assets, which would also support the yen's value.

The bank has set its three-month target at 158 yen per dollar and its six-month target at 155. These revisions mark a shift from Goldman Sachs' previous bearish outlook on the Japanese currency.