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S. Korea's forex trading falls in June

SEOUL
2024-07-10 15:36

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SEOUL, July 10 (Xinhua) -- South Korea's foreign exchange trading turned downward due to weak demand for both the U.S. and the Chinese currencies, central bank data showed Wednesday.

The daily average transaction of foreign currencies and relevant derivatives in the domestic inter-bank market stood at 32.66 billion U.S. dollars in June, down 2.04 billion dollars from the prior month, according to the Bank of Korea (BOK).

The downturn came after growing 13.6 billion dollars in May, affected by lower demand for the U.S. and the Chinese currencies, of which the daily average trading reduced 2.31 billion dollars and 0.27 billion dollars each last month.

Demand for FX swaps added 0.21 billion dollars to 17.21 billion dollars in June compared to the prior month, while the transaction of other derivatives, including currency swaps and options, slipped 0.04 billion dollars to 2.63 billion dollars.

Foreign capital worth 2.09 billion dollars flowed into the local stock market in June, while the domestic bond market posted a net foreign fund inflow of 0.37 billion dollars.

The daily average volatility in the won/dollar exchange rate retreated to 0.26 percent in June from 0.45 percent in the previous month.

Premium on credit default swap, which measures credit risk for the five-year government bonds, averaged 36 basis points in June, up from 35 basis points in the prior month.
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