The yen rebound has completely reversed, and concerns about a GPIF adjustment have emerged

robot
Abstract generation in progress
Cointelegraph news: The Japanese yen rebounded after remarks by Japan’s Finance Minister Katayama, but it has now fully retreated. The US dollar to Japanese yen (USD/JPY) has again returned to above 162, nearly restoring all the gains that were lost when Katayama first mentioned encouraging the Government Pension Investment Fund (GPIF) to increase its allocation to domestic asset holdings. Analysts say GPIF’s core asset allocation framework has not actually changed, and market sensitivity to future policy signals is likely to persist—especially against the backdrop of yen weakness this week. Rising energy prices and a stronger US dollar are also putting pressure on the yen. GPIF’s total investment portfolio at the end of fiscal year 2025 is about 293.6 trillion yen (approximately $1.8 trillion). Even a change in allocation of just a single percentage point would result in inflows of nearly 3 trillion yen. Despite the market having been optimistic about Katayama’s comments, reactions have now shifted to a more cautious interpretation.
USDJPY-0.10%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 4
  • 1
  • Share
Comment
Add a comment
Add a comment
TheGlamorousLifeInTh
· 3h ago
1111111111111111111111111111
Reply0
NoSleepBridge
· 5h ago
GPIF’s marginal effect of 3 trillion has already been priced in by the market; what we’re now watching is whether they will actually adjust allocations.
View OriginalReply0
EvenRocksNeedLiquidity
· 5h ago
A pool of $293 trillion, where 1% equals $3 trillion—this leverage effect is too scary, but if you don’t move, then you don’t move.
View OriginalReply0
YieldYeti
· 5h ago
Did Shishiyama’s speech only last half an hour? The yen’s constitution is hopeless.
View OriginalReply0
  • Pinned