Daily turnover in foreign exchange trade in Seoul hit the highest in a decade in the second quarter amid heavy fluctuation in the Korean won battered by the trade war between the United States and China as investors expected heavy toll on Korean exports that heavily hinge on the two markets.
According to the Bank of Korea on Monday, daily foreign exchange turnover in the April-June period averaged $57.65 billion, up 1 percent from the previous quarter. The figure is the highest since the central bank began compiling related data from 2008.
By product type, daily spot exchange averaged $22.97 billion in the second quarter, up 0.8 percent from the previous quarter. On the spot market, daily won-dollar exchange averaged $16.39 billion, up 1.2 percent over the cited period, while the daily exchange of the won-yuan plunged 11.9 percent to $1.89 billion.
Daily turnover for foreign derivatives reached $34.68 billion in the second quarter, up 1.1 percent from the previous quarter. Daily average of forward exchange transaction increased 1.1 percent to $11.3 billion and daily foreign exchange swaps also up 0.6 percent at $22.08 billion.
The won was among the most volatile currencies in the second quarter as it followed the Chinese yuan hit by a barrage of trade tariffs from the United States. In May alone, the yuan fell more than 6 percent against the greenback while the won slipped more than 5 percent.
The won swung 19.1 won ($0.017) against the dollar also in June, marking the biggest volatility since March, 2016. In the second quarter, the won fell 4.8 percent.
By Kim In-oh and Lee Eun-joo
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]