Tokyo - AFP
Japan said Wednesday its foreign exchange reserves hit a record high $1.3 trillion in November after authorities intervened in currency markets to stem the yen\'s rise. 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 forex reserves, the second-biggest in the world after China, 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, but it was the fourth intervention since September 2010. 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 foreign earnings when repatriated. The latest data did not break down foreign exchange assets by currency, but Japan has bought 2.975 billion euros worth of debt issued by the eurozone bailout fund, the European Financial Stability Facility, so far this year. Tokyo fears any further deterioration in the European crisis could cause serious problems for Japan\'s export-dependent economy as it gradually recovers from the impact of the March 11 earthquake and tsunami. The dollar was changing hands at 77.72 yen in Tokyo trade on Wednesday.