South Korea's foreign exchange reserves fell slightly in June as the central bank sold some of its dollar holdings to bolster the Korean currency.
The nation's foreign reserves fell to $258.1 billion as of the end of June from $258.2 billion a month earlier, the Bank of Korea (BOK) said.
Foreign reserves consist of securities and deposits denominated in overseas currencies along with International Monetary Fund reserve positions, special drawing rights and gold bullion.
"Foreign reserves fell marginally in June as the central bank's dollar supply to the foreign exchange market offset the effects of higher investment profits and a weaker U.S. dollar," Yonhap News quoted Ha Keun-cheol, a BOK official, as saying.
Dealers estimated that foreign exchange authorities unloaded at least $5 billion in June to curb the won's steep fall.
A weaker won against the greenback puts upward pressure on inflation by making imports more expensive. The won has fallen almost 11 percent since the turn of this year.