LONDON (Reuters) - Trading volumes of currencies shrank 7.6 percent in February from a year earlier, Refinitiv data showed, as a slump in foreign exchange price volatility discouraged traders from buying and selling.
Average daily trading volumes touched $428 billion in February, down from $463 billion a year earlier and $446 billion in January, Refinitiv said in a statement published late on Wednesday.
Declining activity in the spot market was behind the fall, with spot volumes - at $87 billion - having their worst month since August 2017. Other volumes, which include swaps and options, held up much better.
Foreign exchange volatility, which is often correlated with trading volume growth, has slumped in 2019 as central banks move together in pressing pause on plans to tighten monetary policy.
Reporting by Tommy Reggiori Wilkes; Editing by Toby Chopra