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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.

Dealers in the trading room at foreign exchange brokerage in Tokyo.

Photographer: Akio Kon/Bloomberg
Updated on

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.