The Japanese yen dove to its lowest value in nearly two weeks on Thursday against the world's reserve currency after advisors noted the increased pace of inflation permits the pension fund of Japan to cut down on reliance on domestic bonds, according to Bloomberg.
Valued at 128.6 trillion yen, the Government Pension Investment Fund is considered the globe's largest. It is set to draw returns of 1.7 percent, which is on top of an increase in pay for laborers, according to a draft report penned by the committee as cited by Bloomberg.
"The market is leaning in favor of being long dollar-yen," currency strategist Brian Daingerfield with Royal Bank of Scotland Group Plc. in Stamford, Connecticut told the news source on Thursday. "Dollar-yen had a big move lower on Monday as the situation in the Ukraine escalated. The reversal of that move has pushed us back into the middle of the year's range."
The monetary unit of the Pacific Rim nation dropped roughly 0.4 percent against the U.S. dollar after having touched its lowest value since February 21.
Deputy Governor Kikuo Iwata with the Bank of Japan said on Thursday said the financial institution is set to continue its policy of intervention, RTT News reports .
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