SEOUL, July 12 (Xinhua) -- South Korea's foreign exchange (FX) trading grew in the second quarter due to higher demand for the U.S. and Chinese currencies, central bank data showed on Wednesday.
The daily average transaction of foreign currencies and foreign currency derivatives in the local inter-bank market came to 34.93 billion U.S. dollars in the April-June quarter, up 2.67 billion dollars from the prior quarter, according to the Bank of Korea (BOK).
It was caused by stronger demand for the U.S. and Chinese currencies, of which the daily average trading increased 0.6 billion dollars and 1.13 billion dollars each.
Demand for FX swaps expanded 0.91 billion dollars from three months earlier to 15.15 billion dollars in the second quarter.
Foreign capital worth 310 million dollars flowed out of the South Korean stock market in June, while the local bond market posted a net foreign fund inflow of 3.23 billion dollars.
The daily average volatility in the won/dollar exchange rate added to 0.51 percent in June from 0.32 percent in the previous month.
Premium on credit default swap, which measures credit risk for five-year government bonds, averaged 35 basis points in June, down from 43 basis points in the prior month. ■
