S. Korea`s inter-bank FX turnover rises 16.3 pct in Q2

SEOUL, July 22 (Yonhap) -- The daily foreign exchange turnover of banks in South
Korea rose for the second straight quarter in the April-June period on decreased
currency volatility, the central bank said Wednesday.
The daily trading volume of foreign exchange among banks averaged US$21.47
billion in the second quarter, up 16.3 percent from three months earlier,
according to the Bank of Korea (BOK).
"In particular, the daily FX turnover in June almost climbed to levels seen
before the collapse of Lehman Brothers," a BOK official said. "The daily
fluctuation of the won-dollar exchange rate eased, helping stabilize the currency
market."
In June, the daily transaction amounted to $23.26 billion, similar to the level
registered in August 2008 when turnover reached $23.5 billion per day, it added.
The daily transactions of foreign exchange spots climbed 33.2 percent on-quarter
to $6.34 billion and those of foreign exchange derivatives gained 14.3 percent to
$10.49 billion.
Hit by the U.S.-sparked global financial meltdown, the Korean currency tumbled
25.7 percent against the U.S. dollar last year alone, becoming one of the world's
worst-performing currencies.
The average daily fluctuation of the won-dollar exchange rate has subdued since
the fourth quarter of last year, when the won's volatility hit an over 10-year
high, the BOK said. The daily volatility of the local currency reached 17.1 won
in the second quarter, compared with 26.2 won in the preceding quarter.
sooyeon@yna.co.kr
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