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Foreigners buy US$4.4 bln of S. Korean equities in July

All News 12:00 August 13, 2020

SEOUL, Aug. 13 (Yonhap) -- Foreign investors purchased South Korean stocks and bonds worth US$4.39 billion in July in expectation of improved corporate earnings, the central bank said Thursday.

Foreign investors bought local stocks worth $1.39 billion in July after a five-month selling spree. Foreign investors also purchased local bonds worth $3.01 billion, extending their buying spree to a seventh month, the Bank of Korea (BOK) said.

Meanwhile, volatility in South Korea's currency markets eased in July from a month earlier.

This file photo shows the logo of the Bank of Korea in front of its headquarters in central Seoul. (Yonhap)

The daily fluctuation of the dollar-won exchange rate averaged 0.24 percent in July, compared with 0.52 percent a month earlier, the BOK said.

"The won has strengthened against the dollar due to improved investor sentiment" over South Korea's deal with the U.S. to extend a $60 billion bilateral currency swap agreement, the BOK said.

In July, the BOK and the U.S. Federal Reserve agreed to extend the swap agreement by six months to the end of March next year, a move that eased lingering market uncertainties amid the new coronavirus pandemic.

The won finished at 1,185.6 against the greenback on Aug. 11, compared with 1,191.3 won at the end of July, the BOK said.

The credit default swaps premium for foreign exchange stabilization bonds came to 25 basis points in July, down from 27 basis points a month earlier, the BOK said.


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