Japan's foreign reserves rise to the highest level in six years

According to the Ministry of Finance, Japan's foreign reserves rose in November to their highest level in six years for two reasons: first, the dollar’s decline led to a boost in the value of non-dollar foreign assets; and second is authorities’ refrain from intervention in the currency market.

The ministry officials said that Japan's gold reserves grew 2.65% from the previous month. At the end of November, Japan's gold reserves were at $1.226 trillion. The rise in foreign reserves was the first increase in four months and their highest since December 2016.

Japan's gold reserves declined in September and October due to the intervention of authorities in the process of selling the dollar and buying the yen. Back then, the authorities sought to curb the decline of the yen against the dollar. Due to a rise in foreign bond yields, the value of the gold reserves was lowered.

The US currency fell about 10% against the yen in October. The fall of the US currency came after it reached a 32-year high of almost 152 yen. The dollar pulled back due to speculation about raising interest rates and approaching inflationary peak.