GS · News · 20260921N

Emerging Markets and FX Outlook

GOLDMAN SACHS GROUP INC · 2026-09-21 · Importance 17 · Surprise 24

Goldman Sachs analysts expect the Japanese yen to weaken further as markets anticipate a more dovish pace of Bank of Japan tightening. Potential additional Federal Reserve rate hikes and investor concerns about Japanese policy shifts are cited as further downward pressures. Slow repatriation or reallocation by Japanese investors holding unhedged foreign assets is expected to provide no strong near-term yen appreciation catalyst absent intervention.

Key facts

• Goldman Sachs analysts suggest the yen may continue to weaken due to a more dovish outlook on the Bank of Japan's tightening pace and investor concerns about policy shifts. source