Currency Trading Volumes Climbed in April in Japan, Australia

Currency trading increased in Japan and Australia in April from six months earlier, led by a surge in forwards, according to the foreign exchange committees in the two nations.

Daily average turnover of currency forwards jumped 28 percent to $61.8 billion in April from October in Japan and 19 percent in Australia, the data showed. Total foreign-exchange turnover, which includes spot, forwards, options and swaps, expanded 5.1 percent in Japan and 6 percent in Australia.

“Higher demand for currency hedging could be part of the reason for the increased turnover of forwards, considering the change in the trend for the yen since the start of this year,” Koji Fukaya, the Tokyo-based chief executive officer at FPG Securities Co., said by phone.

Japanese exporters have increased use of currency forwards amid volatility, while insurers including Nippon Life Insurance Co. and Dai-ichi Life Insurance Co. buy overseas bonds using currency hedges. The yen climbed 13 percent against the U.S. dollar in the six months ended April 30, largely on haven buying.

The figures from the countries are the first to be published in a series of coordinated snapshot surveys on currency volumes. Data from countries including Singapore, U.K. and North America are set to follow.

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