BLBG:Goldman Sachs Recommends Selling the Dollar Against the Yen
Investors should sell the dollar against the yen, betting the U.S. currency will weaken about 4.5 percent to 79, because of a “potential reversal of recent yen- negative factors,” according to Goldman Sachs Group Inc. (GS)
“There is a substantial risk that the sharp move in the yen will reverse at least partially in the new fiscal year,” Goldman Sachs analysts led by London-based Thomas Stolper wrote today in an e-mailed report. “Seasonal patterns point in that direction. The surprise improvement in the February trade balance in Japan supports our view and we are now also coming very close to fiscal year-end in Japan.”
Investors should end the trade should the dollar close above 84.50 yen, Goldman Sachs said.
The dollar weakened 1.2 percent to 82.42 yen at 4:34 p.m. London time.
To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
