SEOUL, March 13 (Xinhua) -- South Korea's foreign exchange trading fell last month due to lower demand for both the U.S. and Chinese currencies, central bank data showed Wednesday.

The daily average transaction of foreign currencies and foreign currency derivatives in the local inter-bank market stood at 33.76 billion U.S. dollars in February, down by 3.37 billion dollars compared to the previous month, according to the Bank of Korea (BOK).

It was caused by weak demand for the U.S. and Chinese currencies, of which the daily average trading reduced by 0.67 billion dollars and 2.28 billion dollars, respectively.

Demand for foreign exchange swaps declined by 0.45 billion dollars to 16.93 billion dollars in the cited month, but the transaction of other derivatives, including currency swaps and options, increased by 0.34 billion dollars to 2.60 billion dollars.

Foreign capital worth 5.59 billion dollars flowed into the South Korean stock market in February, while the domestic bond market posted a net foreign fund inflow of 2.52 billion dollars.

The daily average volatility in the won/dollar exchange rate slipped to 0.21 percent in February from 0.34 percent in the previous month.

Premium on credit default swap, which measures credit risk for the five-year government bonds, averaged 32 basis points in February, up from 29 basis points in the prior month. Enditem

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