The relentless selling of the yen looks to have come to an end and some green shoots of positive commentary are beginning to appear.
Goldman Sachs Group Inc. touted the currency as an ideal recession hedge and remarked on its ‘significant value’ in a note Tuesday. Scotiabank analysts made the case for a modest yen rebound in a report the same day.
The yen has been in freefall this year as the dovish Bank of Japan keeps local yields anchored to the floor while their Treasury equivalents surge on expectations for aggressive Federal Reserve rate hikes. It has fallen 12% against the dollar — the worst performance among Group-of-10 peers — with Japan’s position as a commodity importer at a time of surging prices also weighing.