ID :
58377
Thu, 04/30/2009 - 17:05
Auther :
Shortlink :
https://www.oananews.org//node/58377
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S. Korea's inter-bank FX turnover rises 11.3 pct in Q1
SEOUL, April 30 (Yonhap) -- The daily foreign exchange turnover of banks in South
Korea rose for the first time in a year in the first quarter on decreased
currency volatility, the central bank said Thursday.
The daily trading volume of foreign exchange among banks averaged US$18.5 billion
in the January-March period, up 11.3 percent from three months earlier and the
first gain since the first quarter of 2008, according to the Bank of Korea (BOK).
"The daily fluctuation of the won-dollar exchange rate eased in the first quarter
compared with the final quarter of last year, dispelling some uncertainty
surrounding the currency market," an official at the BOK said.
The daily transactions of foreign exchange spots climbed 25.3 percent on-quarter
to $4.76 billion and those of foreign exchange derivatives gained 13.7 percent to
$9.18 billion, the BOK said. But the daily trading of currency forwards declined
49.1 percent to $540 million.
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 won has dipped another 6 percent so far this year, but it is stabilizing as
the trade balance improves and local banks make efforts to borrow from overseas.
In the first quarter, the Korean currency fell 9 percent to the greenback.
In the first quarter, local exporters unloaded more foreign exchange forwards
than bought them as they expected that the Korean currency would stabilize. Net
sale of FX forwards reached $4.1 billion last quarter, a turnaround from net
buying of $4 billion.
Korean shipbuilders and exporters usually sell dollar forwards to hedge currency
risks in advance after winning contracts when the won is widely expected to gain
to the dollar.
The daily fluctuation of the won-dollar exchange rate reached 26.2 won last
quarter, down from 45.2 won in the fourth quarter, the BOK said. Average
volatility of the won in the fourth quarter was the highest since 48.3 won
recorded in the first quarter of 1998.
sooyeon@yna.co.kr
(END)
Korea rose for the first time in a year in the first quarter on decreased
currency volatility, the central bank said Thursday.
The daily trading volume of foreign exchange among banks averaged US$18.5 billion
in the January-March period, up 11.3 percent from three months earlier and the
first gain since the first quarter of 2008, according to the Bank of Korea (BOK).
"The daily fluctuation of the won-dollar exchange rate eased in the first quarter
compared with the final quarter of last year, dispelling some uncertainty
surrounding the currency market," an official at the BOK said.
The daily transactions of foreign exchange spots climbed 25.3 percent on-quarter
to $4.76 billion and those of foreign exchange derivatives gained 13.7 percent to
$9.18 billion, the BOK said. But the daily trading of currency forwards declined
49.1 percent to $540 million.
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 won has dipped another 6 percent so far this year, but it is stabilizing as
the trade balance improves and local banks make efforts to borrow from overseas.
In the first quarter, the Korean currency fell 9 percent to the greenback.
In the first quarter, local exporters unloaded more foreign exchange forwards
than bought them as they expected that the Korean currency would stabilize. Net
sale of FX forwards reached $4.1 billion last quarter, a turnaround from net
buying of $4 billion.
Korean shipbuilders and exporters usually sell dollar forwards to hedge currency
risks in advance after winning contracts when the won is widely expected to gain
to the dollar.
The daily fluctuation of the won-dollar exchange rate reached 26.2 won last
quarter, down from 45.2 won in the fourth quarter, the BOK said. Average
volatility of the won in the fourth quarter was the highest since 48.3 won
recorded in the first quarter of 1998.
sooyeon@yna.co.kr
(END)
