Business · Markets · 1 hr ago

Goldman Says Yen Is Becoming a Better Hedge Against AI Market Shock

Goldman Says Yen Is Becoming a Better Hedge Against AI Market Shock

Goldman Sachs says the yen is becoming a stronger hedge against a market shock driven by artificial intelligence.

A hedge is an investment that may help offset losses elsewhere.

The view concerns Japan’s currency and global markets.

Goldman says changes in Japan’s policy backdrop have reduced the risk that the yen will weaken sharply when global yields rise.

That could make the yen more useful to investors seeking protection from an AI-related market shock.

Goldman gives no further details about the policy changes or what may happen next.

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