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TOKYO - JAPAN'S foreign reserves surpassed US$1 trillion (S$1.39 trillion) for the first time in February, the government said on Friday, fuelled by a stronger euro and gains in the value of US Treasurys.
Reserves of convertible foreign currencies, gold and International Monetary Fund special drawing rights rose US$11.94 billion from January to US$1.01 trillion, the Ministry of Finance said.
February's result marked the ninth straight month of increases and followed a US$22.68 billion gain in January.
China is the only other country with foreign currency reserves of more than $1 trillion.
The strengthening of the euro against the dollar to US$1.5179 at the end of February from US$1.4861 at the end of January was one of the main reasons for the increase.
The value of Japan's euro-denominated bonds rises as the European currency climbs against its US counterpart because Japan calculates the value of its reserves in dollars.
Another contributor to February's gain was a drop in US Treasury yields, which move inversely to prices and in which Japan invests the bulk of its reserves. The 10-year Treasury yield was 3.513 per cent at the end of February, down from 3.597 per cent at the end of January.
Higher gold prices also helped boost the country's foreign reserves in February. -- AP
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