Japan’s Reserves Tally Likely Too Early to Reflect Intervention
- Foreign currency reserves fell $14 billion in April, data show
- Suspected move on April 29 would likely settle in early May
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Japan’s foreign currency reserves dropped by $14 billion in April, a fall that reflects a decline in the value of foreign securities holdings rather than intervention in the market.
The country’s forex reserves decreased to $1.14 trillion in April, largely on the back of drop in the holdings of foreign securities to $978 billion from $995 billion the previous month, according to a finance ministry report Thursday. The securities holdings had been expected to fall due to a decline in the market value of overseas assets including Treasuries as yields rose.