Residents' FX deposits hit new high in Oct. on hopes of strong dollar

Foreign currency deposits at banks in South Korea surged to a record high in October on expectations for a strong dollar, central bank data showed Tuesday.

Residents' outstanding foreign currency-denominated deposits had stood at a fresh record of $100.77 billion as of end-October, up $6.57 billion from the previous month, according to the Bank of Korea (BOK).

It marks the first time the country's foreign currency deposits have surpassed the $100 billion level. It also represents the third consecutive month of on-month increase. In September, they climbed by $1.6 billion from the previous month.

Residents include local citizens, foreigners staying here for more than six months and foreign companies. The data excludes interbank foreign currency deposits.

The central bank said October's jump came as the South Korean won is projected to weaken to the greenback, which increases the local currency value of deposits.

The South Korean currency exchanged hands at an average of 1,181.90 won to the dollar in October, down 11.40 won from the prior month.

Dollar-denominated deposits increased by $5.37 billion to $87.52 billion in October, and euro-denominated deposits rose by $550 million to $4.44 billion.

Corporate deposits had reached $81.96 billion as of end-October, up 6.2 billion from the previous month, with individual holdings dropping by $370 million to $18.81 billion. (Yonhap)