Goldman Sees Yen Weakness on Move Toward More Stimulus
- Bank says euro likely to drop on any expanded ECB bond-buying
- Federal Reserve is projected to hold rates unchanged this week
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At Goldman Sachs Group Inc., currency strategists say it’s not just about the Federal Reserve.
The Bank of Japan, which meets Tuesday, is on course to boost monetary stimulus, weakening the yen to 130 versus the dollar within 12 months, Goldman Sachs analysts, including Robin Brooks, the chief currency strategist in New York, wrote in a report. While Goldman sees further easing coming in October, two of 35 analysts surveyed by Bloomberg News forecast further stimulus at Tuesday’s gathering. The euro, meanwhile, will decline to 95 cents per dollar next year as the European Central Bank expands its asset-buying program, the analysts wrote.