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Japan’s foreign reserves extended declines in October, following the previous month’s record drop, the Ministry of Finance said on Tuesday, reflecting the largest ever amount of yen-buying, dollar selling intervention.
The data comes alongside separate figures that confirmed Japan did not conduct stealth intervention in September and only entered the market to buy yen for dollars on Sept. 22, its first foray into the market since 1998.
The currency intervention and rising foreign bond yields more than offset other factors that would support reserves, such as higher valuations of other foreign assets and income gains from foreign bond holdings, officials said.
