NEW YORK—The Bank of Japan, which widened the trading band for 10-year Japanese government bonds (JGBs) on Tuesday, may have inflicted damage on the dollar against the yen, but Goldman Sachs analysts said there was further room for the greenback to rise.
On Tuesday, the dollar plunged as much as 4 percent against the yen, its largest daily percentage fall since 1998. The U.S. currency, however, rebounded on Wednesday, and was last up 0.4 percent at 132.28 yen.
In Wednesday’s research note, Goldman said the path for the yen depended on whether the BOJ move was a technical adjustment as the central bank had pointed out, or the start of a tighter monetary policy regime….