South Korea's M2 money supply continued to expand in October, but the rate of the growth slowed from the previous month ahead of an anticipated U.S. rate hike, central bank data showed Wednesday.
  

The M2 reached 2,235.8 trillion won ($1.89 trillion) in October, inching up 0.1 percent from the previous month, according to the Bank of Korea.
  

The October reading marks an 8.8 percent rise from the same month last year, compared with a 9.4 percent on-year increase in September that marked the fastest rate of growth since June 2010.
  

The M2 includes currency in circulation, as well as types of deposits with a maturity of less than two years at lenders and non-banking financial institutions. It does not cover those with a maturity of two years or longer, government bonds or corporate bonds.
  

The slowdown in the growth of M2 comes ahead of an imminent U.S. rate hike, which is widely expected to prompt a mass outflow of foreign capital from the country and other newly emerging market nations.
  

Foreign investors are already showing signs of leaving South Korea in anticipation of higher interest rates in the United States and other advanced countries. Earlier reports showed foreign investors in South Korea remained net sellers of local stocks between June and September, with their net selling in August also marking the highest level in 26 months. (Yonhap)