SEOUL, July 25 (Yonhap) -- The daily foreign exchange (FX) trading by banks in South Korea hit a fresh high in the second quarter as volatility in th
SEOUL, July 25 (Yonhap) — The daily foreign exchange (FX) trading by banks in South Korea hit a fresh high in the second quarter as volatility in the currency market heightened, central bank data showed Monday.
The daily FX turnover, including trading of derivatives, came to an average of US$65.59 billion in the April-June period, up 0.1 percent from $65.55 billion three months earlier, according to the data from the Bank of Korea (BOK).
It marked the largest amount since 2008, when the central bank started compiling related data under revised rules.
The rise was attributable to an increase in market volatility amid the prospect that the U.S. Federal Reserve could raise interest rates at a faster-than-expected clip to curb inflation. The won has slid more than 9 percent against the dollar so far this year.
The increased FX turnover also came even as the country saw its trade volumes fall from three months earlier amid heightened external economic uncertainty.
The value of South Korea’s exports and imports reached the daily average of $5.27 billion last quarter, down from $5.39 billion in the first quarter.
The daily average turnover of foreign exchange spots reached $25.05 billion in the second quarter, up 0.4 percent from three months earlier.
But the daily average transactions of FX derivatives inched down 0.1 percent on-quarter to $40.54 billion, the BOK said.
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