Daily FX turnover hits record high in Q2 on foreign investment, currency volatility

Korea's daily foreign exchange trading hit a record $82.16 billion in the second quarter driven by investor activity and volatility.

A clerk checks U.S. dollar notes at a center of Hana Bank in Seoul on Dec. 19 in 2024. [Yonhap]

Daily foreign exchange trading by banks in 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 Tuesday.

Daily foreign exchange turnover, including the trading of derivatives, averaged $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.

“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 foreign exchange derivatives advanced 10.2 percent from the previous quarter to $49.39 billion in the second quarter, while the average daily spot foreign exchange trading volume surged 17.3 percent on quarter to $32.77 billion, the data showed.

Yonhap