There may be less than meets the eye in the $600-billion drop in global foreign reserves. Most of the slump in the 12 months through July is attributable to a stronger dollar reducing the value of reserve currencies, according to a JPMorgan Chase & Co. report, Bloomberg reported. The euro tumbled 18% against the dollar during the period while the yen lost 17% of its value. “Despite the remarkable outright decline in reserve balances over the past year, it is important to recognize that this comes at a time when both the EUR and JPY have depreciated significantly against the dollar,” said JPMorgan economists led by Joseph Lupton in a note Thursday.
