Japan Urges Pension Funds to Buy Domestic Assets as Yen Sinks 32% in 5 Years
Updated
Updated · Bloomberg · Jul 10
Japan Urges Pension Funds to Buy Domestic Assets as Yen Sinks 32% in 5 Years
3 articles · Updated · Bloomberg · Jul 10
Summary
Japan’s finance minister unexpectedly called on the nation’s huge pension funds to raise investments in domestic assets, aiming to support the yen.
The appeal lifted the currency on Friday after years of weakness, with officials signaling that shifting large pools of capital home could bolster demand for yen-denominated assets.
The yen has fallen 32% against the dollar over the past five years, the worst performance among about 30 peers except the Turkish lira and Argentine peso.
That slide has left Japan’s currency trading near its weakest level in roughly four decades, underscoring pressure on policymakers to find new ways to steady it.