Korean currency's volatility rises

The daily volatility of the South Korean currency rose in the first quarter from three months earlier, affected by emerging market unrest, the central bank said Thursday. The average daily volatility of the local currency was measured at 4.9 won in the January-March period, compared with 3.4 won the previous quarter, according to the Bank of Korea (BOK). The volatility increased in tandem with fluctuations in the currencies of other emerging countries, it said. The won posted the sixth-lowest daily volatility of 0.36 percent among 15 currencies of the Group of 20 economies, the BOK said. The Korean won fell 0.9 percent against the U.S. dollar in the first quarter following a 1.8 percent appreciation in the fourth quarter. South Korean banks' daily foreign exchange trading volume rose in the first quarter from three months earlier on improving exports, the BOK said. The daily foreign exchange trading volume among banks averaged US$19.6 billion in the first quarter, up 12.9 percent from the previous quarter.