Foreign currency deposits down for 1st time in 5 months in South Korea
Seoul (The Uttam Hindu): Foreign currency deposits fell for the first time in five months in October on sagging corporate demand for U.S. dollar-denominated deposits and increasing import settlements amid a weak Korean currency, central bank data showed on Sunday. Residents' outstanding foreign currency-denominated deposits reached $98.97 billion as of end-October, down $5.1 billion from a month earlier, according to the data from the Bank of Korea (BOK). The figure had climbed from June through September after a four-month losing streak.
Residents include local citizens, foreigners who have stayed in South Korea for more than six months and foreign companies. The data excludes interbank foreign currency deposits. By currency, dollar-denominated deposits dropped by $3.1 billion to $82.74 billion, and Japanese yen-denominated deposits fell by $540 million to $9.8 billion last month. Euro-denominated deposits went down $800 million to $4.18 billion, and Chinese yuan-denominated deposits decreased by $600 million to $1.19 billion. Corporate deposits shed $4.47 billion to $84.28 billion as of end-October, and individual holdings slid $630 million to $14.69 billion, the data showed.
The Korean currency had weakened markedly against the greenback from 1,319.6 won in September to 1,383.3 won as of end-October, according to the BOK. Meanwhile, Seoul shares closed nearly flat on Friday as investors' bargain hunting limited declines amid lingering uncertainties, including a possible slowdown in U.S. rate cuts. The benchmark Korea Composite Stock Price Index edged down 2 points, or 0.08 percent, to close at 2,416.86. The main index briefly fell below the psychologically significant 2,400 level at one point.
Trade volume was moderate at 607 million shares worth 11.7 trillion won (US$8.36 billion), with gainers outpacing losers 505 to 390. Foreigners sold a net 75.8 billion won worth of local stocks, and individuals bought a net 31.1 billion won. Institutions sold a net 13.9 billion won.
