Goldman Sachs Sees Yen at 165 per Dollar in 12 Months

The yen extended its decline against the U.S. dollar in July, sliding to as weak as 162.80 yen per dollar, its lowest level since December 1986, according to Jiemian News. Goldman Sachs raised its 12-month USD/JPY forecast to 165 from 155, and lifted its 3-month and 6-month forecasts to 162 and 163, from 160 and 158, respectively. The bank cited a wide U.S.-Japan interest-rate gap, rising fiscal pressure in Japan and the Bank of Japan’s slow pace of rate hikes as factors weighing on the yen, and said any Japanese government FX intervention would likely have only temporary effects.