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South Korea foreign exchange reserves drop to lowest since mid-2020

SEOUL : South Korea’s foreign exchange reserves dropped in October to the lowest level in more than three years, as authorities deployed measures to curb weakness in the local currency, central bank data showed on Friday.

The country’s FX reserves stood at $412.87 billion at the end of the month, down from $414.12 billion at end-September, according to the Bank of Korea. It was the smallest since June 2020.

The central bank said the fall was due to measures to ease volatility in the foreign exchange market, including its FX swap programme with the national pension fund, while the converted value of non-dollar assets also fell.

The won weakened 0.09 per cent in October against the dollar, after hitting its lowest level since November 2022. The U.S. dollar index, a measure of the greenback’s value against six major currencies, rose 0.49 per cent.

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