Hanwha Ocean sells forward contracts worth 20billion dollars, raising its hedge ratio to above 70%
Hanwha Ocean sold 10-day 20billion dollars’ worth of forward contracts, raising its currency hedge ratio to above 70%. The contracts were sold through 2~3domestic and foreign banks, and plans for additional sales next week have also been confirmed. The dollar-won exchange rate came under downward pressure from the sales during the session.
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Hanwha Ocean offered forward contracts worth 10billion dollars for sale in the Seoul foreign-exchange market on 20. The move was reportedly aimed at raising its currency hedge ratio to above 70%.
The contracts were reportedly sold through 2~3domestic and foreign banks. The transactions were carried out by having the banks absorb the volume.
Hanwha Ocean had effectively pursued an open-currency position strategy, but began raising its hedge ratio through forward-contract sales last month. The company is said to have continued steadily increasing its hedge ratio in 7.
The company is reportedly planning to sell additional forward contracts next week as well. The specific additional amount and timing have not yet been disclosed.
Hanwha Ocean's forward sales reportedly put downward pressure on the dollar-won exchange rate during trading hours. The market understood that the selling volume affected foreign-exchange flows.
The selling route was confirmed through domestic commercial banks and foreign banks. The specific names of the participating banks and the individual amounts were not disclosed.
Sources: 연합인포맥스
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