LOC11:10
08:10 GMT
TOKYO, Dec 7 (KUNA) -- Japan's foreign exchange reserves rose to a new
record of USD 970.19 billion at the end of November, up USD 15.70 billion from
the previous month, remaining the world's second-largest, the Finance Ministry
said Friday.
The rise marked the sixth straight month of increase.
The increase in foreign exchange reserves, which includes convertible
foreign currencies, gold and International Monetary Fund special drawing
rights, is largely attributed to valuation gains in the government's holdings
of the US Treasuries, the ministry said.
The rise in the euro against the dollar also inflated Japan's
euro-denominated assets. At the end of November, the euro traded at USD 1.
4633, against USD 1.4487 a month earlier.
Japan's foreign exchange reserves are second only to those of China, whose
holdings reached USD 1.46 trillion at the end of October, according to the
latest comparable data. Russia came third ranks third, followed by Taiwan and
South Korea. Higher foreign reserves enable Asian countries and regions to
more readily defend the value of their currencies.
The reserves are closely monitored for evidence of how Japanese authorities
are managing vast foreign currency holdings, as the actions have significant
impact on currency exchange rates and global bond markets, particularly in the
US government bond market.
Monetary authorities have not intervened in the market since mid-March of
2004. (end)
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KUNA 071110 Dec 07NNNN