The dollar pared earlier losses and gained against the yen on Friday after Japan’s welfare minister said reforms for the country’s giant pension fund would continue as planned.
The greenback also held near a four-year high against a basket of major currencies, and further gains looked likely for the U.S. currency as it boasted its the biggest yield advantage over the euro in 15 years.
The dollar had stumbled overnight as a sell off on Wall Street favoured the safe-haven yen.
The dollar recovered, however, after Japan’s Welfare Minister Yasuhisa Shiozaki denied media reports that suggested Tokyo would delay reforming its $1.26 trillion Government Pension Investment Fund (GPIF)
Reform of the fund is expected to result in more investment being channelled into Japanese equities and overseas assets, and reports of a possibe delay had given the yen a bullish nudge, until the minister spoke out.