Won-dollar volatility eases in Q3

The volatility in the won-dollar exchange rates eased in the third quarter from a quarter earlier as a possible US rate hike and other uncertainties have already been factored in the markets, central bank data showed Wednesday.

The average gap between the daily high and low of the won-dollar exchange rates came to 7.2 won in the July-September period, smaller than the 7.7 won fluctuation a quarter earlier, the Bank of Korea said. 

The third-quarter tally also marked the lowest level since the 6.3 won posted in the fourth quarter of 2015.

The average daily variation, showing the change from the previous session's closing price, came to 6.0 won, down from the average 6.5 won in the previous quarter.

The narrowing fluctuation in the won-dollar exchange rates was largely attributed to expectations in the global financial market that the US Federal Reserve could raise its interest rate once within this year, the BOK said.

In the third quarter, the local currency traded at an average of 1,120.30 won against the US dollar, up 3.8 percent from 1,163.30 won in the previous quarter, it said.

Meanwhile, the BOK said the daily foreign exchange turnover by South Korean banks came to $22.53 billion in the third quarter, down 3 percent from $23.23 billion in the previous quarter. (Yonhap)