Japan's Foreign Reserves Plummet by Record $79.6 Billion Amid Yen Intervention

Japan's foreign reserves saw a historic decline in August, falling by $79.6 billion to $1.208 trillion.

This represents a 6.18% drop from July and is the largest monthly reduction on record, according to Ministry of Finance figures released on September 7.

The decrease followed Tokyo's efforts to counter the yen's persistent weakness through dollar sales and yen purchases in transactions valued at 15.4 trillion yen ($98.66 billion) between July 30 and August 26.

A significant portion of Japan's reserves, around 70%, are held in foreign securities, primarily US Treasuries accumulated during past dollar-buying interventions.