- Yen shows significant value as a recession hedge – Goldman Sachs
Market news
9 June 2022
Yen shows significant value as a recession hedge – Goldman Sachs
Despite the yen closing in on a 24-year low vs. the US dollar, Goldman Sachs Group Inc. strategists still remain bullish on the Japanese currency.
Key quotes
“We see rising chances of a change in the policy mix in Japan -- in the form of FX intervention or a shift higher in the yield-curve control tolerance limit.”
“The scenario where yen depreciates on a trend basis due to uniquely weak domestic inflation seems a relatively low probability outcome.”
“A US recession could lead to a 15%-20% drop in the dollar-yen.”
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USD/JPY attempts a rebound from 133.80, downside looks likely on improved risk appetite
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