Yen Strengthens 0.6% After Japan's Finance Minister Signals Pension Fund Push Into Domestic Assets

The Japanese yen strengthened 0.6% against the dollar to 161.44 per dollar on Friday, July 10, 2026, after Japan's Finance Minister Satsuki Katayama signaled a policy shift. Speaking at a routine post cabinet meeting press conference, Katayama said the government wants to find ways to encourage the Government Pension Investment Fund (GPIF), which holds 293.6 trillion yen (1.81 trillion dollars) in assets, to substantially increase its investment in domestic assets. Alongside the yen's gain, the yield on Japan's benchmark 10 year government bond fell 10 basis points to 2.775%, its steepest monthly drop. The move came just days after the yen had traded near a four decade low against the dollar amid renewed U.S. strikes on Iran earlier this week.