Business

Forex reserves grow by $1.25 billion

Japan’s foreign-exchange reserves in July grew by $1.25 billion from June to $819.2 billion, the second-highest on record, the Finance Ministry said Friday.

The slight increase came from interest earned on overseas assets and an increase in holdings of U.S. Treasury bills, which further lifted the value of reserves, the ministry said.

Japan’s holdings of U.S. Treasuries ballooned earlier this year due to an unprecedented currency intervention aimed at dampening the yen’s rise and protecting the nation’s export-driven economy.

But in a separate report, the ministry confirmed that Japan had stayed out of currency markets altogether in the April-June quarter, marking an abrupt end to five quarters of aggressive dollar-buying.

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