SEOUL, Nov. 13 (Xinhua) -- South Korea's foreign exchange trading fell last month due to soft demand for FX swaps and the Chinese currency, central bank data showed Thursday.
The daily average transaction of foreign currencies and derivatives in the domestic inter-bank market stood at 42.71 billion U.S. dollars in October, down 0.83 billion dollars from a month earlier, according to the Bank of Korea (BOK).
The downturn was affected by weaker demand for the Chinese currency, of which the daily average trading retreated 0.53 billion dollars.
The daily average transaction of the U.S. currency gained 0.34 billion dollars last month.
Demand for FX swaps shrank 0.38 billion dollars from a month earlier to 19.40 billion dollars in October, while the transaction of other derivatives, including currency swaps and options, grew 0.06 billion dollars to 2.74 billion dollars.
Foreign fund worth 3.02 billion dollars flowed into the domestic stock market in October, but the local bond market posted a net foreign capital outflow of 0.72 billion dollars.
The daily average volatility in the won versus U.S. dollar exchange rate advanced to 0.39 percent in October from 0.28 percent in the previous month.
The won versus dollar exchange rate went up to 1,424.4 won per dollar at the end of October from 1,402.9 won a month earlier.
Premium on credit default swap, which gauges credit risk for five-year government bonds, averaged 24 basis points in October, up from 20 basis points a month ago. ■
