Seoul, Oct 27 (IANS) Daily foreign exchange (FX) trading by banks in South Korea hit an all-time high in the third quarter, driven by increased spot transactions, central bank data showed on Monday.

Average daily FX turnover, including derivatives trading, came to an average of $82.84 billion during the July-September period, up 0.8 per cent from the second quarter, according to the data from the Bank of Korea (BOK), reports Yonhap news agency.

It marked the highest quarterly level since the central bank began compiling such data under the current statistical standards in 2008, and the third consecutive record high.

“While spot FX trading continued to grow following the extension of foreign exchange market trading hours, trading in FX derivatives declined amid reduced exchange rate volatility,” a BOK official said.

Average daily spot FX turnover climbed 6.4 per cent on-quarter to $34.86 billion in the third quarter, while derivatives trading fell 2.9 per cent to $47.98 billion.

The volatility of the Korean won-U.S. dollar exchange rate decreased from 0.61 per cent in the second quarter to 0.35 per cent in the third quarter, the data showed.

Meanwhile, Seoul shares continued to increase late Monday morning, tracking overnight gains on Wall Street, amid hopes that the United States and China are nearing a comprehensive trade deal.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 89.25 points, or 2.26 per cent, to 4,030.84.

After a six-day streak of record gains since October 15, the KOSPI paused Thursday as investors locked in profits but rebounded to end in positive territory Friday.

On Friday (U.S. time), U.S. stocks also advanced, with the Dow Jones Industrial Average up 1.01 per cent and the tech-heavy Nasdaq climbing 1.15 per cent.

The rally came after top trade negotiators from the world’s two largest economies said Sunday they had reached an agreement on a range of contentious issues, including export controls, fentanyl and shipping levies.

–IANS

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