Goldman Strategist Still Bullish on the Yen on US Slowdown Bet
- US slowdown, BOJ policy change could boost currency: Goldman
- Yen close to falling to lowest since 1998 on policy divergence
Dealers in the trading room at foreign exchange brokerage in Tokyo.
Photographer: Akio Kon/BloombergThis article is for subscribers only.
The yen may be flirting with a near 24-year low but Goldman Sachs Group Inc. strategist Zach Pandl is happy to remain in a dwindling bullish camp on the currency.
The firm’s co-head of global FX, rates and EM strategy sees two broad scenarios for the yen to strengthen -- either soon in a US economic downturn or thanks to a central bank policy shift or intervention. The latter would come from inflation finally reigniting in Japan, because of high commodity prices, the weaker currency and the reopening of the economy.