Japanese foreign exchange reserves rose to a new absolute maximum value last month almost $1.01 trillion. A $11.9 billion change is attributed to the growth of the euro against the dollar, which was significant in February.
Reported by the Ministry of Finance Japan countrys reserves remain among the highest in the world only China possesses bigger foreign exchange reserves in their U.S. dollar value.
Februarys gain was a second straight record setting for Japans reserves this year after a gain of $22.7 billion in January.
The euro rose from 1.4861 to 1.5179 in February increasing the value of the
Japans foreign currency reserves are closely watched by the investors as an important indicator of the global financial markets. When the reserves increase rapidly its considered to be a sign of elevated volatility, when the assets are transfered to less risky Japan. When reserves decrease its considered to be a sign of the governments currency intervention to hold down the yens appreciation.
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