SEOUL, June 9 (Xinhua) -- South Korea's foreign exchange trading fell last month due to lower demand for foreign exchange derivatives, central bank data showed Thursday.

The daily average transaction of foreign currencies and FX derivatives in the domestic inter-bank market amounted to 30.34 billion U.S. dollars in May, down 2.67 billion dollars from the prior month, according to the Bank of Korea (BOK).

It was attributed to weaker demand for FX swap, the daily average trading of which dropped 2.27 billion dollars in the cited month.

Foreign fund worth 1.29 billion dollars flowed out of the local stock market, but 2.06 billion dollars of foreign capital flowed into the domestic bond market.

The daily average volatility in the won/dollar exchange rate gained to 0.45 percent in May from 0.41 percent in the previous month.

Premium on credit default swap, which measures credit risk for the five-year government bonds, averaged 44 basis points in May, up from 33 basis points in the prior month. Enditem

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