Japan's foreign reserves drop by a record $80 billion in August following yen intervention

YICHANG, CHINA - AUGUST 03: A netizen displays Japanese yen and US dollars on August 3, 2026 in Yichang, Hubei Province of China. Japan and the US have confirmed that they jointly intervened last week to halt a slide in the yen after it weakened to a fresh 40-year low. (Photo by Liu Junfeng/VCG via Getty Images)Vcg | Visual China Group | Getty ImagesJapan's foreign reserves have fallen at their fastest pace since ministry records started in 2000, slumping 6.18% in August.Finance ministry data showed that foreign reserves stood at $1.207 trillion, down from July's figure of $1.287 trillion. This is the fourth straight month of decline, and surpassed the previous record in May, when reserves had dropped 5.58%. While the finance ministry did not give the reason for the decline, Japanese media outlet Kyodo News cited an unnamed finance ministry official, saying the drop was due to interventions aimed at propping up the yen and a decline in the value of government bonds, following a jump in yields. Global bond yields have been climbing to multiyear highs, with yields in Germany, the UK, and U.S. Treasuries hitting sharp milestones. Masahiko Loo, senior fixed income strategist at State S...