Japan's foreign-exchange reserves stood at $843.54 billion at the end of June, marking a $1.07 billion surge from a month earlier and the first rise in two months, the Finance Ministry said Thursday.
This is the third-highest level on record, following the $844.54 billion logged in December and the $843.60 billion posted in April.
Foreign-exchange reserves rebounded in June as the inflated value of U.S. Treasury bonds held by the Japanese government more than offset the lower value of Japan's euro-denominated assets, a ministry official said.
Treasury bond prices rose amid declines in long-term interest rates in the United States, while the single European currency fell against the dollar and other major currencies, diminishing the value of euro-denominated assets when converted into the dollar.
Japan remained the largest holder of foreign reserves of any country or territory for the 67th straight month.
According to the ministry, Japan had $703.65 billion in foreign securities as of June 30, up from $700.69 billion a month earlier.
Foreign currency deposits came to 121.32 billion, down from $123.18 billion.
Of the deposits, $7.20 billion was held in foreign central banks and the Basel-based Bank for International Settlements, $41.52 billion in Japanese banks and $72.60 billion in foreign financial institutions. Japan had $10.75 billion in gold, up from $10.20 billion in May.
It had $5.19 billion in International Monetary Fund reserve positions, down from $5.72 billion, and $2.62 billion in special drawing rights, down from $2.69 billion.