S. Korea's foreign currency trading hits record high in 2018

Source: Xinhua| 2019-01-30 13:35:21|Editor: WX
Video PlayerClose

SEOUL, Jan. 30 (Xinhua) -- Foreign currency trading in South Korea hit a record high last year as the country's trade reached a new high, central bank data showed Wednesday.

The daily average transaction of foreign currency and foreign exchange derivatives was 55.51 billion U.S. dollars in 2018, up 9.6 percent, or 4.87 billion dollars, from the previous year, according to the Bank of Korea (BOK).

It was the biggest since the bank began compiling the data in 2008. The record trading came as the country's trade reached a fresh high of 1.14 trillion dollars last year.

Foreign currency transactions on the spot market gained 8.9 percent over the year to 21.33 billion dollars last year.

Trading of FX derivatives advanced 10.1 percent to 34.18 billion dollars in the cited period as demand rose to hedge foreign exchange risk amid the U.S. Federal Reserve's benchmark rate hike.

The Fed raised its target rate four times last year by a quarter percentage point each to a range of 2.25-2.50 percent, increasing volatility in the won/dollar market.