SEOUL, July 14 (Xinhua) -- South Korea's foreign exchange trading grew in the second quarter due to strong demand for both the U.S. and Chinese currencies, central bank data showed Tuesday.

An employee works at the dealing room of Hana Bank in Seoul, South Korea, March 9, 2026. (Photo: Xinhua)

The daily average transaction of foreign currencies and derivatives in the domestic inter-bank market increased 7.92 billion U.S. dollars from three months earlier to 53.40 billion USD in the April-June quarter, according to the Bank of Korea (BOK).

Demand for FX swaps advanced 2.75 billion USD to 24.12 billion USD, while the transaction of other derivatives, including currency swaps and options, was up 0.44 billion USD to 3.48 billion USD.

The daily average volatility in the South Korean won versus U.S. dollar exchange rate gained to 0.50 percent in June from 0.45 percent in May.

The won versus dollar exchange rate mounted to 1,549.4 won per dollar at the end of June from 1,507.9 won tallied a month earlier.

Premium on credit default swap, which gauges credit risk for five-year government bonds, averaged 23 basis points in June, down from 25 basis points a month ago.