Japan's foreign exchange reserves in September dropped 4.20 billion US dollars from the previous month to 843.56 billion dollars, the Finance Ministry said Friday.

The decline is mainly attributed to valuation losses on holdings of US Treasuries whose prices fell amid interest rate hikes.

However, Japan's foreign exchange reserves remained the largest in the world for the 70th straight month, the ministry said.

The country's foreign exchange reserves consist of securities and deposits in foreign currencies plus International Monetary Fund reserve positions, IMF special drawing rights and gold.

Source: Xinhua