Forex turnover hits $1.7trn a day in London

The bank of England reported a recovery in foreign exchange dealing activity in London over the past year.

The Bank said that the average daily reported UK turnover in "traditional" foreign exchange transactions was $1,620bn in April 2010, an increase of 15 per cent over the previous six-month period, ending in October last year, reflecting higher volumes of activity during the various eurozone sovereign debt crises .

Average daily reported UK turnover in other "over the counter" foreign exchange instruments was $127bn in April 2010, an increase of 13 per cent over the previous comparable period.

Combined average daily turnover in April 2010 was $1,747bn, 15 per cent higher than in October 2009, and 31 per cent higher than a year earlier.

The euro-dollar trade dominates the forex trade, accounting for about a half of all transactions. The Bank's survey covered 31 major institutions involved in the foreign exchange market in London.