Foreign funds flow into S. Korea amid low FX volatility

Source: Xinhua| 2017-05-15 15:37:12|Editor: xuxin
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SEOUL, May 15 (Xinhua) -- Foreign funds flowed into South Korea's financial market last month amid low volatility in the foreign exchange market, central bank data showed Monday.

Foreign capital, which flowed into the country to buy securities, amounted to 2.2 billion U.S. dollars in April, Bank of Korea (BOK) data showed.

It was down from 5.49 billion dollars recorded in March when the foreign funds inflow touched the five-year high, but it kept the inflow momentum.

Foreign investors bought domestic stocks worth 990 million dollars in April, while purchasing 1.21 billion dollars of bonds.

The won/dollar exchange rate was 1,137.9 won per dollar as of end-April, up 1.7 percent from a month earlier.

The exchange rate's daily average volatility fell from 0.47 percent in March to 0.43 percent in April, indicating the stable foreign exchange market.

Premium on credit default swaps for the 5-year government bonds, which reflects sovereign credit risks, averaged 56 basis points in April, up 8 basis points from the previous month.

It indicated the rising geopolitical risks on the Korean Peninsula, caused by the dispatch of a U.S. aircraft carrier to the peninsula and belligerent rhetoric from the Democratic People's Republic of Korea (DPRK).

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