S.Korea's foreign currency trading rises in Q2 on increased volatility

Source: Xinhua| 2019-07-25 12:47:48|Editor: Yamei
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SEOUL, July 25 (Xinhua) -- South Korea's foreign currency trading rose in the second quarter on an increased volatility in the foreign exchange market, central bank data showed Thursday.

The daily foreign currency transactions in the inter-bank market averaged 57.63 billion U.S. dollars in the April-June quarter, up 4.9 percent, or 2.67 billion dollars, from the previous quarter, according to the Bank of Korea (BOK).

It marked the biggest foreign currency trading, except the record high of 57.65 billion dollars tallied in the second quarter of last year.

The increased volatility in the foreign exchange market, caused by worry about the global trade dispute, led traders to hedge currency risk through the FX derivatives products.

The FX derivatives trading grew 6.6 percent, or 2.33 billion dollars, from three months earlier to 37.33 billion dollars in the second quarter.

The won/dollar exchange rate picked from 1,135.1 won per dollar at the end of March to 1,190.9 won two months later, before falling to 1,154.7 won at the end of last month.