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South Korea's foreign reserves fall slightly to $373.9 billion

Staff Writer |
South Korea's foreign reserves fell slightly last month as strong U.S. dollar weakened a conversion value of non-dollar assets.

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Foreign currency reserves reached $373.91 billion as of end-February, down $0.13 billion from a month earlier, according to the Bank of Korea (BOK).

The dollar index against five other major currencies increased 1.6 percent in February, pulling down a conversion value of non-dollar assets such as the European single currency and the British pound.

The dollar's value appreciated to its peers as the U.S. Federal Reserve is forecast to raise interest rates in the near future. Following the quarter percentage point hike in December last year, the Fed indicated three rate increases later this year.

South Korea's foreign reserves are composed of $338.5 billion in securities holdings, $24.96 billion in deposits, $4.79 billion in gold bullion, $2.92 billion of special drawing rights and $1.74 billion of IMF positions.

As of the end of January, South Korea was the eighth-largest holder of foreign reserves, unchanged from the prior month.

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