Japan's Foreign Reserves Plummet Amid Yen Intervention, China Injects Billions

Japan's foreign reserves plummeted to their lowest level in August after Tokyo launched another round of dollar-selling, yen-buying intervention. The country's reserves stood at $1.208 trillion at the end of August, down by a record $79.6 billion, or 6.18 per cent, from $1.287 trillion in July.

The massive decline was largely due to Tokyo's efforts to prop up its currency, which has been under pressure due to persistent weakness. The government data showed that the reserves had dropped by a record amount, exceeding expectations of analysts who had predicted a smaller decline.

In other economic news, China is pumping tens of billions of dollars into eight state-owned banks and insurance companies to help shore up its financial system and boost its slowing economy. The cash injection, led by China's finance ministry, will total 360 billion yuan ($53.6bn; £39.7bn) and aims to stabilize the country's financial markets.