Japan May foreign reserves fall by US$77 billion after large interventions

Japan's foreign reserves fell by US$77 billion in May, government data showed on Friday, as Tokyo resumed massive interventions to stem the yen's slide, fuelling market speculation over how far it's willing to draw on its US$1.3 trillion war chest.

The reserves stood at US$1.306 trillion at the end of May, down from US$1.383 trillion a month earlier, according to the Ministry of Finance (MOF) data.

The data on Japan's foreign reserves, the world's second largest after China, came a week after separate MOF figures showed that Japan spent 11.7 trillion yen (US$73.13 billion) since late April to support the yen in what was the largest-ever intervention ​round in a month.

Investors are scrutinising Japan's foreign reserves and intervention records for clues on how much Japan might be able to spend to rein in the yen's sharp decline against the dollar.

Reuters

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