SEOUL, Feb. 14 (Xinhua) -- South Korea's foreign exchange trading grew last month due to higher demand for the U.S. and Chinese currencies, central bank data showed Friday.

The daily average transaction of foreign currencies and derivatives in the domestic inter-bank market stood at 32.84 billion U.S. dollars in January, up 3.23 billion dollars from a month earlier, according to the Bank of Korea (BOK).

It turned upward after reducing 4.31 billion dollars in the previous month, affected by stronger demand for the U.S. and Chinese currencies, of which the daily average trading gained 2.47 billion dollars and 0.3 billion dollars each.

Demand for FX swaps climbed 0.55 billion dollars to 16.25 billion dollars last month, while the transaction of other derivatives, including currency swaps and options, declined 0.18 billion dollars to 2.38 billion dollars.

Foreign capital worth 0.51 billion dollars flowed out of the local stock market in January, while the domestic bond market posted a net foreign fund outflow of 1.27 billion dollars.

The daily average volatility in the won/dollar exchange rate increased to 0.41 percent in January from 0.37 percent in the previous month.

Premium on credit default swap, which gauges credit risk for five-year government bonds, averaged 37 basis points in January, up 0.1 basis point from a month earlier. Enditem

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