July 9, 2018 / 1:49 AM / 4 months ago

REFILE-China June FX reserves unexpectedly rise to $3.112 trln

(Corrects date of release in second paragraph)

BEIJING, July 9 (Reuters) - China’s foreign exchange reserves unexpectedly rose in June, even as concerns of a full-blown trade war between China and the United States rattled markets.

Reserves rose $1.51 billion in June to $3.112 trillion, compared with a drop of $14.23 billion in May, central bank data showed on Monday.

Economists polled by Reuters had expected reserves to drop by $10.6 billion to $3.10 trillion.

Capital flight was seen as a major risk for China at the start of 2017, but a combination of tighter capital controls and a faltering dollar helped the yuan stage a strong turnaround, bolstering confidence in the economy.

In 2017, the yuan reversed three straight years of depreciation against the greenback and China’s cross-border capital flows went from net outflows to basically stable.

However, the Chinese currency has started a losing streak against the U.S. dollar since April this year and fell 3.25 percent against the U.S. dollar in June alone, its biggest monthly fall on record.

The value of China’s gold reserves fell to $74.071 billion at the end of June, from $77.323 billion at the end of May. (Reporting by Beijing Monitoring Desk; Editing by Sam Holmes)

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