SK Hynix's $26.5B ADR Funding Lifts Seoul FX Swap Points on July 14

SKHY-8.78%
According to Yonhap Infomax, SK Hynix's $26.5 billion raised through an ADR listing on July 10 triggered a sharp rally in Seoul's short-term FX swap market on July 14. The one-month swap point surged by 0.50 won to -0.85 won, while the one-week point rose 0.17 won to -0.19 won. Market participants attributed the move to the large dollar inflow, which banks are expected to convert gradually into won. Foreign bank traders suggested that dollar liquidity building in domestic accounts created "sell-and-buy" demand in short-term swaps before cash conversion occurs.
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