SEOUL, Oct. 10 (Xinhua) -- South Korea's foreign exchange trading rebounded in the third quarter owing to stronger demand for both the U.S. and Chinese currencies, central bank data showed Thursday.
The daily average transaction of foreign currencies and derivatives in the domestic interbank market stood at 34.26 billion U.S. dollars in the July-September quarter, up 0.68 billion dollars from three months earlier, according to the Bank of Korea (BOK).
It turned around after sliding 1.5 billion dollars in the April-June quarter, affected by solid demand for the U.S. and Chinese currencies, of which the daily average trading gained 460 million dollars and 20 million dollars each.
Demand for FX swaps grew 0.31 billion dollars to 17.49 billion dollars during the third quarter, while the transaction of other derivatives, including currency swaps and options, added 0.04 billion dollars to 2.72 billion dollars.
Foreign capital worth 5.57 billion dollars flowed out of the local stock market in September, but the domestic bond market posted a net foreign fund inflow of 3.04 billion dollars.
The daily average volatility in the won/dollar exchange rate slipped to 0.36 percent in September from 0.43 percent in the previous month.
Premium on credit default swap, which gauges credit risk for five-year government bonds, averaged 32 basis points in September, down 3 basis points compared to the prior month. ■
