"New York-based Goldman Sachs....predicts the yen will weaken to 98 per dollar and 142 per euro by the end of the year"
“There is no inflation on the horizon,” said Michael Cheah, who manages $2 billion in bonds at SunAmerica Asset Management in Jersey City, New Jersey.
“If you subscribe to the double dip school of thought this may not be a bad entry point for Treasuries,” said Steve Rodosky, the head of Treasury and derivatives trading at Newport Beach, California-based Pacific Investment Management Co., manager of the word’s biggest bond fund. “The longer-term risk is that the weaker dollar is the cause or affect of people diversifying their holdings or using other currencies as a global currency, but we are a long way from that.”
“China and a few other central banks have grumbled about the dollar but they don’t have many other alternatives so they keep buying,”
So in a nut shell....
Europe doesn't want a weak dollar
China doesn't want a weak dollar
Japan doesn't want a weak dollar
Swiss National Bank doesn't want a weak dollar
Goldman (big dog of all big dogs) predicts dollar strength
No inflation concerns
Interesting....