South Korea's foreign exchange reserves climbed to a fresh high in July as a stronger British pound and Japanese yen boosted the dollar conversion value, the central bank said Tuesday.

The country's foreign reserves reached US$311.03 billion as of the end of July, up $6.55 billion from June, according to the Bank of Korea (BOK). The figure marks a turnaround after falling for two straight months in May and June.

Foreign reserves consist of securities and deposits dominated in overseas currencies, along with International Monetary Fund

(IMF) reserve positions, special drawing rights and gold bullion.

The on-month growth came on the back of gains in non-dollar currencies. In July, the pound gained 2.3 percent to the greenback, while the yen rose 4.7 percent. The euro, however, slipped 0.8 percent amid worries on the region's debt crisis.

In addition, South Korea's holding of gold bullion surged to $1.32 billion in July, compared with $80 million the previous month, the BOK said.

The move came as South Korea purchased gold bullion as part of its efforts to minimize investment risk by diversifying its portfolio. According to World Gold Council data, which doesn't include the new purchase, South Korea ranked as the world's 56th-largest holder of gold bullion in July.

The BOK, however, declined to comment on future purchase plans, citing their possible impact on the market.

As of the end of June, South Korea was the world's seventh-largest holder of foreign exchange reserves after China, Japan, Russia, Taiwan, Brazil and India.

Foreign reserves have been on the rise as dollar inflows have increased amid robust exports and foreign investors' sustained buying of Korean assets.

The reserves exceeded the $300 billion level for the first time in April after they rose above the $200 billion mark in February 2005. (Yonhap News)