Japan's Reserves Plunge by Record $79.6 Billion Amid Currency Intervention

Japan's foreign exchange reserves plummeted to $1.208 trillion at the end of August, marking a record decline of $79.6 billion or 6.18% from July.

The largest monthly drop in Japan's reserves came after large-scale dollar-selling and yen-buying operations aimed at stabilizing the Japanese currency.

Foreign securities, which make up about 70% of Japan's reserves, saw a significant decrease. These U.S. Treasury bonds were largely acquired during previous dollar-buying operations.

Japan spent a record $98.66 billion on currency interventions from July 30 to August 26, with the majority of it going towards yen-buying operations.