By Tetsushi Kajimoto

TOKYO (Reuters) -Japan’s international reserves prolonged declines in October, following the earlier month’s report drop, the Ministry of Finance stated on Tuesday, reflecting the biggest ever quantity of yen-buying, greenback promoting intervention.

The information comes alongside separate figures that confirmed Japan didn’t conduct stealth intervention in September and solely entered the market to purchase yen for {dollars} on Sept. 22, its first foray into the market since 1998.

The foreign money intervention and rising international bond yields greater than offset different elements that may help reserves, equivalent to larger valuations of different international belongings and earnings positive aspects from international bond holdings, officers stated.

Japan’s international reserves fell for a 3rd straight month to$1.19 trillion on the finish of October, nonetheless the world’s second-largest after China, the ministry stated.

Market gamers are scrutinising Japan’s huge pool of international belongings and intervention information for clues on how rather more Japan is likely to be keen to spend in its forays into the foreign money market, though authorities stay tight-lipped on intervention.

Separate information on intervention, which incorporates month-to-month and each day totals, confirmed that authorities didn’t conduct stealth intervention in September, having spent 2.8 trillion yen that month to help the yen.

Japan spent a report 6.35 trillion yen on intervention final month because the yen hit a 32-year low to the greenback.

The yen has remained underneath strain because the Financial institution of Japan stays dedicated to retaining ultra-low rates of interest, in sharp distinction to aggressive charge hikes by the Federal Reserve.

($1 = 146.8700 yen)