Goldman, BofA Favor Swiss Franc Over Yen as Haven Bet

Goldman Sachs Group Inc. and Bank of America Corp. strategists are backing the Swiss Franc over the yen, with rising political uncertainty undermining the appeal of the Japanese currency as a safe-haven asset.

“Long CHF/JPY may be the cleanest trade to express JPY‘s fiscal risk given CHF‘s healthy fiscal profile and increasing risk premium for USD and JPY, the traditional safe haven currencies,” Bank of America’s chief Japan FX and rates strategist Shusuke Yamada wrote in a note Monday. The bank recommends going long the Swiss franc against the yen, with a target of 189.