(MENAFN- QNA) The intraday volatility of the South Korean currency against the US dollar rose in the third quarter compared with three months earlier amid investor hopes for a shift in the US Federal Reserve's monetary policy stance.
The average intraday change in the Korean won versus the dollar increased to 4.4 won in the July-September period, compared with 3.7 won in the previous quarter, according to the Bank of Korea (BOK).
The day-on-day change also rose to 3 won in the three-month period from 2.5 won, with the won's rate of change marking the highest level among G-20 emerging economies.
Overall, the won depreciated 4.1% against the greenback in the third quarter, reversing from a 5.2% appreciation three months earlier, South Korea's News Agency (Yonhap) reported.
The central bank explained that the won strengthened to a yearly high of 1,008.5 won against the US dollar on July 3 but sharply depreciated during the remaining period as the greenback strengthened on hopes of an economic recovery and the Fed's policy change.
The data, meanwhile, showed that forward transactions of domestic companies shifted to US$1.8 billion in net selling from $10.1 billion in net buying in the previous quarter as exporter demand for currency hedging increased.
Non-deliverable Forward (NDF) trading reversed to a net buying of $22.1 billion from a net selling of $16.1 billion amid a strengthening dollar and concerns over a weakening yen, according to the BOK.
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