Japan's Finance Ministry announced it had purchased 300mn euros or 10% of the bonds issued by the European Financial Stability Facility (EFSF), reports said.
This amount has been the lowest in terms of purchases made by Japan from the euro zone rescue fund. The first time that the bonds were issued, Japan bought 1.25bn euros, or 20.5%, of the total issue. This was followed by a purchase of 1.1bn euros, or 22%, in the second issue and 550mn euros, or 17%, in the third issue, reports said.
Analysts opine that the lower rate of purchases may be due to the fact that Japan was US dollar heavy in its foreign exchange holdings. Also, stability in the eurozone was key for Japan's currency policies as the export oriented Asian country is already suffering from a strengthening currency.
Japanese Prime Minister Yoshihiko Noda last week expressed concerns that the eurozone debt crisis could trigger a chain reaction the world over.
Moreover, Finance Minister Jun Azumi has so far opposed the idea of selling yen for euros to pay for EFSF debt purchases, as he said such a move would lead to currency market intervention, reports added.