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© Reuters. FILE PHOTO: Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken September 23, 2022. REUTERS/Florence Lo/Illustration
LONDON (Reuters) – Goldman Sachs (NYSE:) analysts have revised up their projections for the dollar versus the Japanese yen, mainly to reflect a “more persistent U.S. hiking cycle than initially anticipated.
The U.S.-based bank now expects the U.S. dollar at 155 yen in three months (previously 150), 155 in six months (135) and 140 in 12 months (125).
The yen is particularly sensitive to moves in U.S. rates as Japanese authorities have stuck firmly to their ultra-dovish monetary policy stance, causing the gap between U.S. and Japanese benchmark yields to widen.
It has been one of the worst performing major currencies in 2022, having lost over 20% against the dollar, prompting authorities to intervene to strengthen the currency for the first time since 1998 in September.
The dollar, on Wednesday, was last at 145.7 yen having hit 151.9 in October, its highest since 1990.
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Image and article originally from www.investing.com. Read the original article here.