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Japan's foreign reserves fell 6.18% in August, marking the fastest decline since records began in 2000.

Japan's foreign reserves dropped by 6.18% in August, reaching a total of $1.207 trillion. This represents the fastest pace of decline since the finance ministry began keeping records in 2000.

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The drop marks the fourth consecutive month of decrease, surpassing the previous record of 5.58% set in May. Finance ministry data shows the reserves fell from $1.287 trillion in July. The decline is attributed to interventions conducted to support the yen and a decrease in the government bond value following a jump in yields. Tokyo conducted multiple rounds of interventions, spending a total of 27.1 trillion yen so far this year. This amount is the largest yearly total spent on intervention since records began. The yen reached a 40-year low of 163.98 against the dollar on July 23. It currently trades at 155.98. Masahiko Loo stated that the decline reflects policy action rather than financial stress.

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