Japan's Finance Minister Calls for Pension Funds to Increase Domestic Assets; Yen Rebounds 0.7% to 161.29 on July 10

According to Japan's Finance Minister Katagiri Koyuki, on July 10, the yen rebounded 0.7% to 161.29 against the U.S. dollar after the minister urged pension funds to increase domestic asset allocation.

However, some investors questioned the sustainability of the yen's gains, citing ongoing geopolitical risks, fiscal concerns, and interest rate differentials. Without further government action, the yen may decline to new 40-year lows.