The Japanese yen dropped today as the advisory panel said that Japanâs Government Pension Investment Fund no longer needs to stick to a “domestic-bond-centric portfolio” as the country moves out of deflation.
Prime Minister Shinzo Abe’s government was hoping that the GPIF will buy more domestic stocks bonds to generate higher returns for Japan’s population. But now it looks like capital may move out from Japan to foreign companies. The yen also fell as diplomats from Russia and the United States were talking in Paris, giving hope that the conflict between Russia and Ukraine will end peacefully and reducing demand for safe currencies.
USD/JPY rose from 102.28 to 102.72 and EUR/JPY advanced from 140.46 to 141.27 as of 12:57 GMT today.
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