Foreign-currency deposits held by South Korean banks fell for the first time in four months in October amid strengthening in the U.S. dollar, central bank data showed Thursday.

According to data released by the Bank of Korea (BOK), foreign currency deposits totaled $68.11 billion as of end of October, down $5.52 billion from the previous month. It is the first drop in four months after outstanding foreign currency deposits fell $7.17 billion in June.

Dollar holdings decreased due to strengthening in the greenback.

Dollar-denominated savings dropped $4.39 billion from the previous month to $56.86 billion in October. Strengthening U.S. dollar leads to a drop in foreign currency deposits as deposit holders want to sell them at higher value. The dollar added 30.3 won ($0.03) from 1,109.3 won at the end of September to 1,139.6 won at the end of October. On October 11 and October 26, the dollar hit 1,144.4 won and 1,141.9 won, respectively.

Deposits held in yen, meanwhile, amounted to $4.7 billion, down $640 million during the same period, as some companies withdrew temporarily deposited yen holdings. Euro-denominated savings also dropped $220 million to $3.29 billion and yuan deposits $300 million ton $1.37 billion.

By holder, companies held $54.62 billion in foreign-currency deposits, down $4.69 billion, while individuals $13.49 billion, down $830 million, data showed.

Foreign-currency deposits include those held by Korean nationals and companies, foreigners that have stayed in Korea for six months or more, and foreign companies operating in Korea.

By Moon Jae-yong and Lee Eun-joo

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