Japan’s government signals intent to boost domestic asset holdings by pension funds, lifting the yen 0.38% against the dollar.
The yen strengthened 0.38% to 161.77 per dollar after Japan announced plans to encourage pension funds, including the world’s largest, to increase investments in domestic assets. The move aims to support local markets amid the currency’s prolonged weakness near 40-year lows.
Prior to the announcement, the yen had traded near multi-decade lows, with the dollar up about 3% on the week. Analysts noted the initial rally was modest, as the government’s urging lacks binding directives, leaving market impact uncertain.
The yen’s gains extended broadly, with the euro and pound each down roughly 0.4% against the currency. Traders remain cautious, awaiting concrete policy steps before pricing in sustained yen support.