The pair started at Y107.22 while euro-yen opened at Y136.51 and then marked early highs of Y107.24 and Y136.74, respectively. According to dealers, dollar-yen was given a boost by reports that the GPIF was due to raise its allocation of Japanese stocks. That has kept risk sentiment on a positive note and has also kept Japanese stocks trading higher. The announcement of Japan’s Minister of Economy, Trade and Industry Yuko Obuchi’s resignation didn’t trigger a major reaction given that Japanese media had been widely reporting it over the weekend. Obuchi said she is stepping down to prevent a political funding scandal involving her supporters from causing a further delay in policymaking in economic and energy issues. A minor pullback was then seen but losses were contained with dollar-yen dipping briefly to Y107.00 with euro-yen also slipping to Y136.41 before recovering as Japanese stocks gained. Dollar-yen went back to Y107.24 after the start of the Japanese stock market session while euro-yen inched up to Y136.67. Gains persisted later in the morning with dollar-yen bouncing off Y107.05 again to Y107.39 while the cross traded up to Y137.01. Dollar-yen was last at Y107.38 while the cross was at Y136.99.
