South Korea's foreign reserves declined for the second consecutive month in September on the appreciation of the U.S. dollar.

According to the Bank of Korea(BOK) on Friday, the nation's foreign currency reserves stood at 414-point-12 billion dollars as of the end of September, down four-point-18 billion dollars from a month earlier to continue the contraction from August after rising in June and July.

The BOK pinned the decrease on the strong dollar, which gained about three percent last month to drag the value of non-dollar assets down as well as market stabilization measures.

As of the end of August, South Korea was the world's ninth-largest holder of foreign exchange reserves, down one notch from the end of July. China topped the list at over three trillion dollars, followed by Japan, Switzerland and India.