Won-dollar exchange rate 1,400re-enters the won range, with SK hynix ADR as a variable
As the won-dollar exchange rate turned lower in 7the month, foreign selling pressure has eased. The exchange rate, which once surpassed 1,550won, has fallen back to the won range in 7the month 8day, and the listing of SK hynix’s ADR is being cited as a hidden variable in exchange-rate moves and foreign capital flows.1,400.
As the won-dollar exchange rate turned lower in 7the month, foreign selling pressure is easing, affecting stock-market fund flows. The won-dollar exchange rate, which once surged well above 1,550won, gave back its gains in 7the month and fell, and on 7the month 8day it was reported to have dropped to the won range.1,400.
As the stock market weakened, foreign selling pressure appears to have eased. As net foreign selling intensity weakened, exchange-rate volatility also eased somewhat.
Market participants are pointing to SK hynix’s American depositary receipt, or ADR, listing as a hidden variable that could determine the direction of the exchange rate. There is a view that the ADR listing could affect foreign ownership levels and capital inflows and outflows.
The direction of the won-dollar exchange rate and foreign investors’ trading directly affect the short-term trends of the KOSPI and KOSDAQ. As supply-demand swings widen, intraday volatility in individual stocks can also increase.
This move was reported as the result of the market reacting sensitively over a short period to foreign supply and demand as well as company-specific disclosures and trading conditions. It is necessary to check the related disclosures and listing schedules.
As of the time of reporting, 7month 10day. As additional disclosures or official schedule announcements are released, volatility could expand again.
Sources: 매일경제 증권
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.