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Japan's Foreign Reserves Climb in April on Higher Asset, Gold Values
Japan's foreign reserves rose in April, supported by higher reserve assets and gold holdings, according to data released Tuesday by the country's Ministry of Finance.Reserve assets totaled $1.383 trillion at the end of April, up $8.25 billion from $1.375 trillion at the end of March.Foreign currency reserves stood at $1.169 trillion, including $1.007 trillion in securities and $162.2 billion in deposits, official data showed.Gold holdings were valued at $125.4 billion at the end of April.The data comes after Japanese authorities likely stepped into the currency market on April 30 in what is estimated to be the country's first yen-buying intervention since July 2024.Bloomberg estimates, based on Bank of Japan accounts and money market broker forecasts, indicate authorities may have spent around 5.4 trillion yen, or about $34.5 billion, to support the currency.The intervention marked the first under Finance Minister Satsuki Katayama and Prime Minister Sanae Takaichi.Tokyo is also believed to have intervened during the early May holiday period, in addition to the April 30 operations, according to a Reuters report citing a source familiar with the matter.Bank of Japan money market data suggested authorities may have spent as much as 5 trillion yen, or roughly $32 billion, between May 1 and May 6, the report said.Following talks in Tokyo with U.S. Treasury Secretary Scott Bessent on Tuesday, Katayama said Japan and the U.S. reaffirmed close coordination on foreign exchange matters, including efforts to address excessive currency volatility."Given current circumstances, we strongly confirmed anew the need to continue coordinating closely on market moves," Katayama said, according to Reuters, when asked about Japan's recent suspected yen-buying operations.Bessent is also scheduled to meet Prime Minister Sanae Takaichi before concluding his three-day visit to Tokyo on Wednesday.
Nikkei 225
