--Foreign-exchange trading rose 65percent to a record $3.2 trillion a day on average, led bygrowth in hedge funds and foreign investors, the Bank for International Settlements said in its triennial survey. --At the same time, hedgefund assets have risen to a record $1.76 trillion, according toChicago-based Hedge Fund Research Inc. --Transactions involving hedge funds, pension funds, mutualfunds and insurance companies rose to 40 percent of all trades,from 33 percent in 2004, said the BIS, which was formed in 1930and acts as a central bank for the world's monetary authorities.``Algorithmic'' trading, or those managed by computer programs,also spurred growth and increased the speed of trades, accordingto the report. --The U.S. dollar, which fell to a record low against theeuro of $1.4154 today, lost market share. It was involved inabout 86 percent of daily trading, down from almost 89 percent. --The Chinese yuan and the Indian rupee posted the fastestgrowth in global currency trading in the past three years as theeconomies of the world's two most populous nations expanded.Average daily trade in India's currency and related derivativessurged almost fivefold to $34 billion, from $7 billion in 2004.In China, volume grew ninefold to $9 billion. -- The Australian and New Zealand dollars gained market shareas they attracted so-called carry trades. The Australian dollarwas involved in 6.7 percent of daily turnover, up from 5.5percent in 2004 while New Zealand's share rose to 1.9 percentfrom 1 percent. -- The U.K. also dominated the over-the-counter derivativesmarket, accounting for almost 43 percent of worldwide sales,followed by the U.S. with about 24 percent. The derivatives market has expanded 71 percent since 2004,rising to $2.1 trillion a day, the BIS said. Cross-currencyswaps were the fastest-growing segment, almost tripling, astraders hedged foreign-currency bonds. Derivatives are contractswhose value is derived from stocks, bonds, loans, currencies andcommodities, or linked to specific events such as changes ininterest rates.