Japan's Foreign Reserves Plummet by Record $80 Billion in August

Japan's foreign reserves dropped by a record $80 billion in August due to the country's efforts to prop up its currency, the yen. The decline marks the fourth consecutive month of falls and surpasses the previous record set in May.

The finance ministry reported that Japan's foreign reserves stood at $1.207 trillion as of August, down from July's figure of $1.287 trillion. This represents a 6.18% drop, which is the fastest pace since records began in 2000.

Japanese officials have been intervening to support the yen, buying it and selling dollars in an effort to stem its decline. The country has spent a combined total of 27.1 trillion yen ($75.26 billion) on interventions so far this year, with the most recent intervention being a joint effort with the US at the end of July.

Masahiko Loo, senior fixed income strategist at State Street Investment Management, attributed the decline in reserves to Japan's 'recent dollar-selling, yen-buying FX interventions.'