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S. Korea's forex trading grows in May

SEOUL
2024-06-12 14:43

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SEOUL, June 12 (Xinhua) -- South Korea's foreign exchange trading grew last month due to solid demand for both the Chinese and the U.S. currencies, central bank data showed Wednesday.

The daily average transaction of foreign currencies and relevant derivatives in the domestic inter-bank market stood at 34.71 billion U.S. dollars in May, up 1.37 billion dollars from the previous month, according to the Bank of Korea (BOK).

It was caused by higher demand for the Chinese and the U.S. currencies, of which the daily average trading jumped 1.53 billion dollars and 0.22 billion dollars in the cited month.

Demand for FX swaps diminished 0.31 billion dollars to 17 billion dollars, while the transaction of other derivatives, including currency swaps and options, slipped 0.07 billion dollars to 2.67 billion dollars.

Foreign capital worth 1.34 billion dollars flowed into the local stock market in May, while the domestic bond market posted a net foreign fund inflow of 2.77 billion dollars.

The daily average volatility in the won/dollar exchange rate advanced to 0.45 percent in May from 0.40 percent in the previous month.

Premium on credit default swap, which measures credit risk for the five-year government bonds, averaged 35 basis points in May, down from 39 basis points in the prior month.
 
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