Foreign funds flow out of S.Korean financial market on strong currency

SEOUL, Dec. 13 (Xinhua) -- Foreign funds flowed out of South Korea's financial markets last month as strong local currency encouraged foreign investors to lock in profits, central bank data showed Wednesday.

Foreigners offloaded 950 million U.S. dollars in local stocks and bonds in November, according to the Bank of Korea (BOK).

Offshore investors sold domestic securities worth 3.25 billion U.S. dollars in August and 4.3 billion dollars in September respectively amid the escalating geopolitical risks on the Korean Peninsula.

Foreign capital worth 3.48 billion dollars flowed into the local financial market in October, but foreign funds flowed out of South Korea in November as the appreciation of South Korean currency to the U.S. dollar encouraged foreign investors to take profits.

The won/dollar exchange rate traded at 1,088.2 won per dollar as of end-November, down 32.2 won from a month earlier. It was the biggest decline in 10 months.

Conditions for South Korean residents to borrow foreign funds improved last month amid the eased geopolitical tensions on the peninsula.

Premium on the five-year credit default swap contract averaged 66 basis points in November, down 5 basis points from the previous month. Enditem