Japanese Yen Rises with Retirement Investment Plan, Dollar Declines

The Japanese yen was the biggest gainer among Asian currencies on Friday. Tokyo's plan to encourage its pension funds to invest more in domestic assets was effective. Meanwhile, the dollar declined as it focused on the US-Iran conflict. The yen was also supported by stronger-than-expected producer inflation, which increased the likelihood of the Bank of Japan raising interest rates further.

Market Reactions - The USD/JPY pair fell 0.6% to 161.44.

■Finance Minister Satsuki Katayama said Tokyo is trying to encourage its Government Pension Investment Fund to increase investment in domestic assets.

■The fund's increased investment in domestic assets will boost demand for Japanese bonds and the yen.

Dollar's Status - The dollar index fell 0.3% on Friday, under pressure from the strengthening yen.

■The index is also on track for a 0.1% loss this week, its second consecutive weekly decline.

Asian Currencies - The USD/CNY pair fell 0.2%.

■The USD/SGD pair fell 0.1%.

■The AUD/USD pair rose 0.3%.

■The USD/KRW pair was an exception, rising 0.3%.

Markets are highly sensitive to this situation, and the Japanese yen's movements will continue to affect the value of the dollar. The possibility of the Bank of Japan raising interest rates and developments in the US-Iran conflict will continue to impact markets.