The US dollar is softer against most currencies today. The main feature is the recovery of the yen, not in response to material intervention but on the call from the finance minister for Japanese pension funds to invest more in domestic assets. The Nikkei rally 1.2% and the 10-year JGB yield fell for the first time in two weeks. The 13 basis point decline was the largest single day decline this year. The dollar, which had been near JPY162.40, fell to JPY161.30 before finding new bids. Separately, the PBOC set the dollar’s reference rate below CNY6.80 for the first time in three years. (full story)