Taipei: Taiwan's foreign exchange reserves rose from a month earlier, returning to the US$600 billion mark at the end of August as the local central bank stepped into the forex market to prevent the U.S. dollar from falling further against the Taiwan dollar. According to Focus Taiwan, data released by the central bank on Friday revealed that the country's forex reserves stood at US$601.90 billion at the end of August, marking an increase of US$7.63 billion from a month earlier, thereby ending a two-month decline. This rebound represented the highest year-on-year increase in over a year. Tsai Chiung-min, head of the bank's Foreign Exchange Department, explained that foreign institutional investors had moved substantial funds out of the local market in July after receiving significant cash dividends from listed companies they invested in, leading to a depreciation of the Taiwan dollar. However, the situation shifted in August as foreign investors brought in a net fund inflow of about US$1.2 billion to Taiwan , seeking bargains in the local equity market, which had previously been impacted by global volatility. This capital inflow subsequently bolstered the Taiwan dollar, Tsai noted. To stabilize the local foreign exchange market, Tsai mentioned that the central bank intervened by purchasing the greenback and selling the Taiwan dollar, thus moderating the American unit's losses. Market analysts suggested that without the central bank's intervention, the greenback could have experienced a more significant decline. While Tsai did not disclose the exact amount spent by the central bank on market intervention in August, he noted that the bank, in a joint statement with the U.S. Treasury Department late last year, announced it would release such figures on a quarterly basis. In addition to the central bank's intervention, the growth in forex reserves in August also mirrored an increase in returns from the bank's portfolio management and exchange rate movements of other reserve currencies against the U.S. dollar duri ng the month. Central bank data further indicated that as of the end of August, foreign investors held US$1.861 trillion in Taiwan-listed stocks, bonds, and Taiwan dollar deposits, up from US$1.663 trillion at the end of July. These holdings equated to 309 percent of Taiwan's total forex reserves in August, compared to 280 percent a month earlier. The strong recovery in the Taiex, the Taiwan Stock Exchange's benchmark index, which surged by 6.98 percent, was reflected in the increase in these foreign holdings. The central bank has affirmed its commitment to maintaining ample forex reserves to ensure the stability of domestic financial markets and safeguard against any abrupt outflow of funds by foreign institutional investors.