Japan's foreign exchange reserves dropped for the third consecutive month in July, its Finance Ministry said on Friday.
The reserves stood at 1.29 trillion U.S. dollars at the end of July, down 377 million dollars from the previous month.
The decline was driven by higher U.S. Treasury yields, which reduced the market value of U.S. Treasury bonds and other securities held by Japan, according to the ministry.
Securities such as foreign bonds, which make up the bulk of the reserves, totaled 927.332 billion U.S. dollars at the end of July, down 1.25 billion dollars from end of June.
Although the Japanese government and central bank intervened in the yen's exchange rate at the end of July, the effect was yet to reflect in the data because it can take several days to show up, according to the ministry.
Japan's forex reserves drop for 3rd month
