China forex reserves fall to 5-month low in April

BEIJING--China's foreign-exchange reserves dropped to a five-month low in April in the wake of a strengthening U.S. dollar.

The reserves fell $17.97 billion from the previous month to $3.125 trillion, after rising $8.34 billion in March, according to data released Monday by the People's Bank of China. Economists polled by The Wall Street Journal had expected a $13 billion decline.

Valuation effects due to the dollar's rise against major currencies and market pricing of reserve assets led to the drop, the State Administration of Foreign Exchange said in a statement accompanying the release.

China's economic growth will likely remain steady, the regulator said, while the global economic recovery remains on track despite rising uncertainties. That should help keep China's forex reserves stable, it said.

The dollar rose 1.1% against the yuan last month, according to Wind Information. The ICE U.S. Dollar Index, a gauge of the dollar's strength against six other currencies including the euro and Japanese yen, has surged more than 3% from a recent April 16 low.

--Liyan Qi

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