The daily volatility of the won-dollar exchange rate hit a five-month high in January as concerns rise about the stability of the Korean economy, central bank data showed Thursday.

The average gap between the intraday high and low of the won-dollar exchange rate came to 7.9 won in January, the highest since 8.6 won in August, the Bank of Korea said. The January reading is also higher than the annual average for 2015.


And the average daily variation, indicating fluctuations from the previous session’s closing price, reached 6.1 won, hitting a three-month high.

The local currency had begun manifesting large fluctuations in December, when the U.S. Federal Reserve raised its key rate for the first time in nearly a decade.

At one point in January, the won-dollar exchange rate plunged to the lowest level in over five and a half years in January.

Fluctuations in other Asian currencies were also a factor in the increased volatility of the won-dollar exchange rate.

The intraday valuation of the won-dollar exchange rate surged to 10.7 won when China announced devaluation of its currency on Jan. 6. On Friday, when the Japanese central bank announced negative key interest rates, the won-dollar exchange rate variation spiked to 13.8 won, according to the BOK.

(khnews@heraldcorp.com)