Foreign currency deposits in S.Korea fall to 7-month low

Foreign currency deposits in South Korea fell to the lowest in seven months as strong U.S. dollar caused the withdrawal of dollar funds for profit-taking, central bank data showed on Monday.

Deposits denominated in foreign currencies reached 58.91 billion dollars as of end-December, down 2.14 billion dollars from a month earlier, according to the Bank of Korea (BOK).

The deposits refer to those held by South Koreans and foreign residents who stay here for over six months.

The December figure was the lowest since May, keeping a downward momentum for four months in a row.

The dollar-denominated deposits reduced 2.37 billion dollars over the month to 49.66 billion dollars at the end of December. Demand increased to withdraw dollar funds as the strong dollar provided opportunity for profit-taking.

The won/dollar exchange rate averaged 1,183.3 won per dollar in December, up 20 won from the previous month.

The dollar deposits held by companies dipped 1.96 billion dollars to 41.03 billion dollars in the cited period, while individuals-owned dollar deposits fell 0.41 billion dollars to 8.63 billion dollars.

The Chinese yuan-denominated deposits rose 0.14 billion dollars to 1.35 billion dollars, with those denominated in the Japanese yen growing 0.14 billion dollars to 3.63 billion dollars. Endit