JPY is affected by Abe expectations
Japanese yen got under pressure because of the speculation that Japanese Prime Minister Shinzo Abe will appoint tomorrow an ally – Yasuhisa Shiozaki – to head the health, labor and welfare ministry, which is in charge of reforming the nation’s pension fund.
Shiozaki has been actively putting forward suggestions on GPIF reform (Government Pension Investment Fund). Such expectations are lifting up Japanese stocks and keeping yen under pressure.
According to Bloomberg, Japan’s health ministry oversees the 127.3 trillion yen ($1.2 trillion) GPIF, the world’s largest pool of retirement savings. It will probably announce its new asset allocations in autumn. Analysts surveyed by Bloomberg in May predict GPIF will raise its holdings of Japanese equities and trim its domestic bond assets.