Goldman Sachs sees the yen falling 13% against the greenback in 12 months

Tokyo

GOLDMAN Sachs Group Inc is keeping faith with Bank of Japan (BOJ) governor Haruhiko Kuroda's ability to influence markets, predicting that the yen will slide 13 per cent against the dollar by this time next year. "We are very bearish (on) the yen," analysts led by New York-based chief currency strategist Robin Brooks wrote in a report. "There is only one way forward for the BOJ in its pursuit of reflation: to continue surprising markets on the dovish side."

Mr Brooks and his colleagues predict imminent declines, with the yen weakening to 115 per dollar by August, 120 by November and 125 in 12 months. The Goldman Sachs analysts also point to a computer model that suggests that the exchange rate should be closer to 133 per dollar, a level not seen since 2002.