Japan Likely Sold Foreign Securities to Fund FX Intervention

Japan’s holdings of foreign securities decreased in July, suggesting that the government likely financed a large portion of the recent currency intervention by selling Treasuries.

The country’s holdings of foreign securities fell by about $17 billion in July to $911 billion, the Finance Ministry reported Wednesday. Foreign deposits remained largely unchanged at $159 billion, as total reserves edged lower to $1.22 trillion.