SEOUL, March 12 (Xinhua) -- South Korea's foreign exchange trading grew last month due to solid demand for the U.S. and Chinese currencies, central bank data showed Wednesday.

The daily average transaction of foreign currencies and derivatives in the domestic inter-bank market stood at 35.60 billion dollars in February, up 2.76 billion dollars from a month earlier, according to the Bank of Korea (BOK).

It kept an upward trend for the second consecutive month, affected by stronger demand for the U.S. and Chinese currencies, of which the daily average trading gained 1.34 billion dollars and 1.41 billion dollars each.

Demand for FX swaps climbed 0.45 billion dollars to 16.70 billion dollars last month, while the transaction of other derivatives, including currency swaps and options, declined 0.27 billion dollars to 2.11 billion dollars.

Foreign capital worth 1.81 billion dollars flowed out of the local stock market in February, while the domestic bond market posted a net foreign fund inflow of 3.54 billion dollars.

The daily average volatility in the won/dollar exchange rate decreased to 0.39 percent in February from 0.41 percent in the previous month.

Premium on credit default swap, which gauges credit risk for five-year government bonds, averaged 31 basis points in February, down from 37 basis points a month earlier. Enditem

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