Seoul, July 29 (IANS) Daily foreign exchange (FX) trading by banks in South Korea reached an all-time high in the second quarter on increasing foreign investment in domestic securities and exchange rate volatility, central bank data showed on Tuesday.
The daily FX turnover, including trading of derivatives, came to an average of US$82.16 billion during the April-June period, up 12.9 percent from the first quarter, according to the data from the Bank of Korea (BOK).
It marked the largest quarterly figure since the central bank began compiling relevant data under the current statistical standards in 2008, reports Yonhap news agency.
“The increase was due to exchange rate volatility and increased trading by foreign investors in domestic securities,” a BOK official said.
“Since the extension of foreign exchange market trading hours in July last year, trading volume has steadily increased,” he added.
The daily average turnover for FX derivatives advanced 10.2 percent from the previous quarter to $49.39 billion in the second quarter, while the average daily spot FX trading volume surged 17.3 percent on-quarter to $32.77 billion, the data showed.
Meanwhile, foreign investors purchased the highest value of South Korean stocks in 15 months in June, central bank data showed this month, driven by eased concerns over U.S. trade policies and optimism about the new Seoul government’s market-supportive measures.
Offshore investors bought a net US$2.27 billion worth of local stocks last month, marking a second consecutive month of net buying, according to the data from the Bank of Korea (BOK).
The June figure marked the highest level since March 2024, when foreigners purchased a net $3.84 billion worth of local stocks. Foreign investors also net purchased $2.81 billion of Korean bonds in June, extending their buying streak to the fifth month.
—IANS
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