Dollar-selling linked to SK Hynix share offer sends won to over 1-month high, source says

Dollar-selling tied to SK Hynix’s U.S. share sale pushed South Korea’s won to a more than one-month high, Reuters reported on July 8. The move emerged in the won-dollar forwards market after SK Hynix launched a U.S. offering intended to raise 43 trillion won (about $28.66 billion). A source told Reuters that dollar selling related to SK Hynix American depositary receipts (ADRs) was seen on Wednesday, driving the won to 1,498.1 per dollar, its strongest level since May 29. Reuters added that SK Hynix is expected to bring U.S. dollars into the country by around July 15, converting part of the ADR proceeds into won. Brent Donnelly of Spectra Markets said the first-order effect is won-buying from “USD receivable” funds, implying material flow even if only a fraction of the roughly $29 billion is hedged. Deputy Finance Minister Moon Ji-sung said supply-demand dynamics are expected to shift in the second half.