Japan's January forex reserves hit record 996.04 billion dollars -

Japan's foreign exchange reserves rose to a record 996.04 billion US dollars at the end of January, supported by a stronger euro and rises in evaluation gains on US Treasurys, the Ministry of Finance said Thursday.
The previous record of 973.36 billion dollars was reached in December.
The yield on the 10-year Treasury fell to 3.597 percent from 4.027 percent, pushing up prices, while the strengthening of the euro increased the dollar value of euro-denominated assets.
The single European currency rose to 1.4861 dollars at the end of January from 1.4591 dollars in December, the ministry said.
The rise in gold price also inflated forex reserves, as the price of gold rose to 923.25 US dollars an ounce in December from 836.50 US dollars in December, it said.
Japan's forex reserves remain the second largest in the world next to China, whose holdings reached 1.53 trillion dollars at the end of December, according to the latest available figures from the Chinese government.
Foreign exchange reserves consist of securities and deposits denominated in foreign currencies, plus International Monetary Fund (IMF) reserves, IMF special drawing rights (SDRs) and gold.
At the end of January, Japan had foreign currency reserves of 968.48 billion dollars, IMF reserves of 1.41 billion dollars, SDRs of 3.06 billion dollars, gold reserves of 22.71 billion dollars and other foreign currency assets worth 376 million dollars.
Japan's reserves are closely watched for evidence of how the country is managing its foreign currency holdings. They are seen as having a significant impact on exchange rates and bond markets around the world, particularly the US government bond market.
The biggest changes in Japan's forex reserves usually occur when authorities intervene in the currency market to prevent the yen from appreciating rapidly. Monetary authorities have not intervened since mid-March 2004.
(1 US dollar = 106.40 yen)