Japan's foreign reserves drop 79.6 billion dollars as yen hits seven-month high
Foreign reserves fell to $1.208 trillion in August, marking the sharpest monthly decline on record. Analysts expect the Bank of Japan to raise rates this month.
Japan's foreign reserves dropped to $1.208 trillion at the end of August, representing a historic monthly decline of $79.6 billion or 6.18 percent. The Ministry of Finance attributes most of this decrease to falling values in foreign stocks, particularly U.S. Treasury bonds which now make up roughly 70 percent of reserves. This drop coincides with the yen reaching its strongest level in seven months while expectations for the Bank of Japan to increase interest rates grow. Earlier interventions involved Tokyo buying dollars to weaken the currency before two decades ago. The Securities and Exchange Board of India recently allowed foreign investors holding only government bonds to skip investor group reporting rules.
