South Korea end-Jan FX reserves edge down to 8-mth low

[SEOUL] South Korea's foreign reserves edged down to their lowest level in eight months in January, central bank data showed on Wednesday, as currencies held by the bank continued to weaken against the US dollar.

Foreign reserves stood at US$362.19 billion at the end of January, the Bank of Korea said in a statement, down US$1.41 billion from the previous month.

According to the central bank, the euro fell 6.8 per cent against the greenback in January, while the pound dropped 3.1 per cent and the Australian dollar slipped 4.9 per cent.

As a result, the foreign reserves fell to their lowest level since May last year.

The US dollar has rallied since late last year as improving economic conditions there reinforce expectations of an interest rate rise, and as monetary policy easing by other countries led to weakening of their currencies.

The Bank of Korea does not provide monthly breakdowns of their reserves, which are the seventh largest in the world, by currency.

REUTERS