The yen weakened against the dollar after Reuters reported that Japan has no plans to overhaul the Government Pension Investment Fund's asset allocation.

The currency moved lower as investors digested the news that the world's largest pension fund, with over $1.5 trillion in assets, will maintain its current investment strategy. Market participants had speculated about potential shifts toward foreign bonds or equities.

The GPIF's allocation decisions are closely watched as they can influence global capital flows. The fund's current target allocation includes domestic and foreign bonds, domestic and foreign equities, and short-term assets.

Analysts said the status quo reduces uncertainty but may limit yen upside potential. The dollar-yen pair reacted immediately to the headline, highlighting the market's sensitivity to Japanese institutional investment policy.