SEOUL, March 15 (Xinhua) -- Foreign currency deposits in South Korea rose last month on expectations for strong U.S. dollar amid the expected interest rate hike in the United States, central bank data showed on Wednesday.
Deposits denominated in foreign currencies stood at 67.94 billion U.S. dollars as of end-February, up 3.29 billion dollars from a month earlier, according to the Bank of Korea (BOK).
The foreign currency deposits refer to those owned by local residents and foreigners who have stayed here for more than six months.
The deposits increased for two months through February as the dollar-denominated deposits reached the record monthly high of 57.98 billion dollars last month, up 2.75 billion dollars from the previous month.
During the January-February period, the dollar deposits jumped 8.32 billion dollars on expectations that the U.S. Federal Reserve would raise its policy rate as early as this month.
The Fed indicated three rate hikes in 2017 alone after lifting the benchmark rate by a quarter percentage point in December.
The won/dollar exchange rate averaged 1,143.36 won per dollar in February, down 3.3 percent from the previous month.
The weaker dollar boosted demand for the U.S. currency on sentiment that they can exchange the South Korean currency for the greenback at a cheaper price.
The Japanese yen-denominated deposits rose 0.24 billion dollars to 4.15 billion dollars, with the European single currency deposits growing 0.28 billion dollars to 3 billion dollars.
