Unexpected Dip: China's Foreign Exchange Reserves in December

China's foreign exchange reserves fell by $64 billion in December, driven by a strengthening dollar. The reserves, the largest globally, dropped to $3.202 trillion, below expectations of $3.247 trillion. The yuan weakened by 0.7%, while the dollar gained 2.6% against major currencies.

China's foreign exchange reserves experienced a sharper-than-expected decline in December, as persistent dollar strength took its toll, latest official data disclosed on Tuesday.

According to the figures, the reserves, the largest in the world, decreased by $64 billion last month, reaching $3.202 trillion. This fell short of the Reuters forecast of $3.247 trillion and represented a decrease from the $3.266 trillion recorded in November.

The yuan weakened by 0.7% against the dollar over the month, while the dollar itself climbed 2.6% against a collection of other major global currencies, impacting China's reserves significantly.

(With inputs from agencies.)