SEOUL, May 10 (Xinhua) -- South Korea's foreign exchange trading fell last month owing to weaker demand for the U.S. currency and derivatives, central bank data showed Friday.

The daily average transaction of foreign currencies and foreign currency derivatives in the local inter-bank market stood at 33.34 billion U.S. dollars in April, down 0.72 billion dollars compared to the previous month, according to the Bank of Korea (BOK).

It was caused by lower demand for the U.S. currency, of which the daily average trading declined 0.64 billion dollars in the cited month.

Demand for FX swaps decreased 0.23 billion dollars to 17.31 billion dollars, but the transaction of other derivatives, including currency swaps and options, increased 0.47 billion dollars to 2.74 billion dollars.

Foreign capital worth 1.92 billion dollars flowed into the local stock market in April, while the domestic bond market posted a net foreign fund inflow of 2.12 billion dollars.

The daily average volatility in the won/dollar exchange rate inched down to 0.40 percent in April from 0.41 percent in the previous month.

Premium on credit default swap, which measures credit risk for five-year government bonds, averaged 39 basis points in April, up from 34 basis points in the prior month. Enditem

Related

Go to Forum >>0 Comment(s)