AI Data Insight
Japan's foreign exchange reserves fell to 976,913 million USD in August 2026, continuing to shrink from 994,976 million USD in July, reflecting the authorities' massive sell-off of US Treasuries to defend the yen. Boosted by the rare joint intervention by the US and Japan, as well as expectations of tightening by the Bank of Japan, the yen exchange rate has gained short-term support. Going forward, close attention must be paid to the convergence speed of the US-Japan interest rate differential and whether officials will restart currency market interventions.