Japan forex reserves hit new record high

TOKYO: Japan's foreign exchange reserves hit a record high of $1.3 trillion in November after authorities intervened in currency markets to stem the yen's rise, the government said Wednesday.

The level was $94.88 billion higher than in October, the finance ministry said, and surpassed a previous record of $1.22 trillion set in August.

The reserves are composed mainly of foreign-currency denominated securities and bank deposits along with gold and other assets, according to ministry data.

The country's foreign exchange reserves expanded following Japan's intervention in currency markets on October 31, after the yen hit a fresh post-war high of 75.32 against the dollar.

In the month to November 28, Tokyo sold 9.09 trillion yen ($116.99 billion) to tame the unit's appreciation, the ministry said earlier.

The government did not reveal how many times it stepped into currency markets between October 28 and November 28, the fourth intervention since September 2010.

But market observers believe authorities likely made other "masked interventions" during the period, which they did not announce, Jiji Press said.

A strong yen hurts Japanese exporters by making their products relatively more expensive overseas and shrinking their overseas earnings when repatriated.

The dollar was changing hands at 77.80 in Tokyo during Wednesday morning trade.

Copyright AFP (Agence France-Presse), 2011