FX Swap Points Retreat on July 28; 1-Year Rate Closes at -12.20 Won After Sharp Prior-Day Surge

According to Yonhap Infomax, South Korea's foreign exchange swap points fell on July 28, reversing the previous day's sharp rally. The 1-year FX swap point closed at -12.20 won, unchanged from the opening, while 6-month, 3-month, and 1-month tenors declined 0.10, 0.30, and 0.35 won respectively.

The pullback came as traders attributed fatigue from the prior day's exceptional surge, which had driven the 1-month swap point into positive territory for the first time since June 2022. Weakness in the broader market, with the KOSPI falling over 10%, combined with declining domestic Treasury yields from risk-off sentiment, also weighed on swap points.