Overview
- The Ministry of Finance reported on Monday that foreign‑currency reserves fell 6.18% at end‑August to $1.2075 trillion, the largest month‑on‑month drop in comparable data since 2000.
- The government and the Bank of Japan carried out yen‑buying/dollar‑selling operations from about July 30 through August 26 that included a coordinated action with the United States on July 31.
- Securities holdings within reserves, which include U.S. Treasuries, plunged 9.47% to $839.5 billion, reflecting the liquidation of foreign assets used to buy yen.
- The yen strengthened to roughly ¥152–¥154 per dollar as markets priced in a narrower Japan‑U.S. interest‑rate gap and greater odds of BOJ tightening, with thin trading conditions amplifying moves.
- Officials say they will keep close communication with the U.S. Treasury to preserve orderly markets and investors warn the rapid currency swing has already hurt export stocks and could force shifts in portfolio and corporate planning.