February 9, 2006	Thursday	Muharram 10, 1427

TOKYO Feb 8: Japan’s foreign exchange reserves Rose by $4.8 billion in January to a record high of $851.67 billion, helped in large part by a stronger euro, the finance ministry said on Tuesday.

The increase in the nation’s reserves, which includes convertible foreign currencies, gold and International Monetary Fund special drawing rights, follows a $3.63 billion rise in December and a $1.48 billion increase in November.

The euro’s recent rise against the dollar was the biggest factor in pumping up the reserves, the ministry said. It was also aided by geopolitical factors, including the stroke of Israeli prime minister Ariel Sharon and the uncertainty of the Palestinian peace process and the impasse with Iran over its nuclear program, the ministry said.

The euro was quoted at $1.2156 in New York at the end of January, up from $1.1848 at the end of the previous month.

Japan’s foreign exchange reserves have shown only minor changes, mostly in line with exchange rate fluctuations, since Tokyo stopped its campaign of currency-market intervention in March 2004.

Japan was also the largest holder of reserves for the 74th straight month in November with $831.08 billion, followed by China, according to the latest data available from the IMF. Data from the IMF differ slightly from those issued by the ministry due to differences in methods used to calculate the value of gold.—AP