17th September 2014
The Japanese yen has extended its decline in forex trading markets today (September 17th), amid reports the country's pension funds are increasingly favouring overseas investments.
According to Nomura Securities, so-called trust accounts lifted their purchases of foreign stocks and bonds to the highest level since 2009. The figures published by the broker include the $1.2 trillion Government Investment Fund.
The yen weakened to a six-year low earlier this month as investors increased their bearish bets on the currency to the highest level since January.
Yunosuke Ikeda, head of currency strategy at Nomura, said; "The shift overseas in pension money is accelerating. With public pensions working toward rebalancing their domestic bond-heavy portfolios, private pensions are highly likely to take the same approach."
Over the course of the month to date, the yen has declined by 2.8 per cent and is on course to record its sharpest monthly drop since November 2013. As of 10:40 BST, the Japanese currency was down by 0.16 per cent versus the US dollar at 107.30 yen.
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