Goldman Strategist Sees Yen Hitting 60 to Dollar Next Crisis
- Dollar-yen is the ‘key pressure point’ in any future downturn
- Yen climbed as Fed applied stimulus after 2008 shock
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With global stocks rallying since the start of the year and recession fears easing in at least some quarters, preparing for the next crisis isn’t top-of-mind for many market players just now. That hasn’t stopped one Goldman Sachs Group Inc. strategist from game-planning.
“On the macro side, I really think dollar-yen for me is the key pressure point,” to consider in the next downturn, Bernhard Rzymelka, Goldman’s head of rates-market strategies Europe, said at a conference in Sydney Wednesday. “I keep asking people where do you think that’s going to go if the Fed cuts to zero” given what happened the last time the Federal Reserve applied extraordinary stimulus, he said, predicting next time it hits a record.