S.Korea's foreign currency trading grows in April-Xinhua

S.Korea's foreign currency trading grows in April

Source: Xinhua| 2022-05-12 11:33:45|Editor: huaxia

SEOUL, May 12 (Xinhua) -- South Korea's foreign currency trading grew last month due to a solid demand for foreign currency derivatives, central bank data showed Thursday.

The daily average transaction of foreign currencies and derivatives in the local inter-bank market amounted to 33.02 billion U.S. dollars in April, up 2.36 billion dollars from the previous month, according to the Bank of Korea (BOK).

It was attributed to a higher demand for foreign currency derivatives, especially the FX swap deals, of which the daily average trading jumped 2.27 billion dollars last month.

Foreign fund worth 4.26 billion dollars flowed out of the domestic stock market amid rising worry about geopolitical risks in Europe and the expected interest rate hikes by the U.S. Federal Reserve.

Foreign capital worth 470 million dollars flowed into the local bond market last month.

The daily average volatility in the won-dollar exchange rate retreated to 0.41 percent in April from 0.56 percent in the previous month.

Premium on credit default swap, which measures credit risk for the five-year government bonds, averaged 33 basis points in April, up from 30 basis points in the prior month.