SEOUL-- Foreign currency deposits at banks in South Korea surged in July from the previous month amid expectations for a strong U.S. dollar, central bank data showed Monday.

Residents' outstanding foreign currency-denominated deposits came to US$90.38 billion as of end-July, up $3.32 billion from a month earlier, according to the data from the Bank of Korea (BOK).

It marks a sharp turnaround from June, when foreign currency deposits shrank by $2.11 billion from the prior month.

Residents include local citizens, companies, foreigners staying here for more than six months and foreign firms. The data excludes interbank foreign currency deposits.

The rise in the July foreign currency deposits came as local companies deposited their dollar holdings amid rising hopes that the South Korean currency would weaken against the greenback down the road.

Corporate deposits surged by $3.33 billion on-month to $75.9 billion in July, with those by individuals falling $10 million to $14.48 billion.

Dollar-denominated deposits stood at $76.47 billion as of end-July, up $2.86 billion from a month earlier. Euro-denominated deposits also rose by $570 million to $5.2 billion, according to the data.

The U.S. dollar averaged 1,307.5 won against the Korean currency last month, up 26.6 won from the previous month.

Source: Yonhap News Agency