Japan’s foreign reserves fell 6.18% in August, the sharpest monthly decline since ministry records began in 2000, as yen-support operations and weaker government-bond valuations reduced the stockpile to $1.207 trillion from $1.287 trillion in July. Tokyo has spent a combined ¥27.1 trillion on intervention so far this year, exceeding the previous annual record of ¥20.4 trillion set in 2003. The Finance Ministry did not give an official reason for the August decline, but Kyodo News cited a ministry official who linked it to dollar-selling, yen-buying operations and falling bond values as global yields rose. Japan bought about ¥11.73 trillion of yen in April and May, followed by a ¥15.4 trillion operation at the end of July that was supplemented by U.S. euro sales. The yen had reached 163.98 per dollar on July 23 and was trading at 155.98 at the time of the report. State Street Investment Management’s Masahiko Loo said the reserve decline reflected policy action rather than financial stress.