Goldman Sachs turns bullish on the Japanese yen: expects to rise to 150 in the next 12 months, with capital inflows and Bank of Japan rate hikes supporting the currency

Odaily Planet Daily News: Goldman Sachs expects the Japanese yen to rise to the 150 level in the next 12 months, reversing its previous bearish stance. The institution believes that changes in Japan's domestic policies and potential capital inflows will enhance the outlook for the yen's appreciation. Goldman Sachs strategist Karen Rechigot Fishman raised her 12-month yen exchange rate forecast from the previous 165 yen per US dollar to 150 yen per US dollar in her report, while adjusting the 3-month and 6-month targets to 158 and 155 respectively. She stated that the adjustment was mainly based on the faster-than-expected pace of interest rate hikes by the Bank of Japan, as well as an increased likelihood of domestic funds returning to Japanese assets. Fishman wrote, "These changes collectively increase the appeal of going long on the yen, especially in a market that is beginning to worry about the risk of economic recession, as the yen can provide some protection." (Jinshi)