The Largest since 2008
The Bank of Korea announced on July 25 that the average daily foreign exchange transactions at foreign exchange banks were US$65.59 billion in the second quarter, up 0.1 percent from the previous quarter and the largest since 2008.
“The daily won-dollar exchange rate fluctuation was 0.35 percent on average in the first quarter but rose to 0.46 percent in the second quarter,” it said, adding, “The upward pressure on the exchange rate and the volatility may continue to increase with the value of the U.S. dollar rising along with concerns over another recession.”
According to the bank, the foreign stock fund inflow and outflow was US$5.27 billion in the second quarter, down 2.2 percent from the previous quarter. Spot exchange transactions increased 0.4 percent to US$25.05 billion while foreign exchange derivative transactions fell 0.1 percent to US$40.54 billion.
Transactions at domestic banks increased 1.7 percent to US$28.03 billion whereas those at foreign bank branches fell 1.1 percent to US$37.57 billion.