S.Korea's foreign currency trading rises in Q1

South Korea's foreign currency trading rose in the first quarter due to solid demand for the U.S. dollar and the Chinese yuan, central bank data showed Wednesday.

The daily average transaction of foreign currencies and derivatives in the local inter-bank market amounted to 29.52 billion U.S. dollars in the January-March quarter, up 3.54 billion dollars from the previous quarter, according to the Bank of Korea (BOK).

It was attributed to the higher trading in the won/dollar and the won/yuan exchange markets.

The daily average volatility in the won/dollar exchange rate advanced to 0.35 percent in the first quarter from 0.27 percent in the prior quarter.

Foreign fund worth 3.93 billion U.S. dollars flowed out of the local stock market in March, while 540 million dollars of foreign capital went into the domestic bond market last month.

Premium on credit default swap, which measures credit risk for the five-year government bonds, averaged 30 basis points in March, up from 27 basis points in the previous month.