Jpy !!!!

UPDATE 2-Japan Nov foreign reserves hit record high after intervention
Wed Dec 7, 2011 3:27am EST

* Over Y9 trln intervention lifts foreign reserves
* Deposits more than triple after intervention
* Analyst sceptical on impact of intervention
* Income from coupon payments also contributes

By Kaori Kaneko

TOKYO, Dec 7 (Reuters) - Japan's foreign reserves hit an all-time high in November after the government spent a record sum intervening in currency markets to curb the yen's gains and help the export-led economy.

Japan has intervened in foreign exchange markets at least three times this year, battling strength in the yen stemming from the euro zone's debt woes and a stuttering global economy.

Finance Minister Jun Azumi has said repeatedly that Japan will not hesitate to take decisive steps against speculative currency moves to protect exporters from a firmer yen.

The government "needs to consider that rises in currency reserves led by intervention mean increases in Japan's borrowing as the nation has to issue financing bills for intervention, and it should also consider unrealised losses," said Tohru Sasaki, head of Japan rates and FX research at JPMorgan Chase Bank in Tokyo.

"I doubt how effective currency intervention is ... but Japan may intervene again if the yen surges to a record high (vs the dollar). The global economic situation is focused on Europe's debt troubles and it's not about the yen," Sasaki said.