Longer-dated FX swap points edge up slightly, 1year -14.60won
In the foreign-currency funding market, longer-dated FX swap points edged up slightly. 1The year tenor closed 0.20won higher at minus 14.60won, while shorter tenors were mostly weak. The market also noted caution over Hanwha Ocean’s forward sales and a variable tied to the Monetary Policy Board.
Longer-dated FX swap points edged up slightly, which may affect foreign-currency funding costs and the won-dollar trend. 1The FX swap point for the year tenor closed at minus(-) 0.20won, up 14.60won from the opening level.
6The month tenor closed at the same level as the opening price, minus(-) 7.60won. 3The month tenor fell by 0.15won to minus(-) 3.75won.
1The month tenor closed at minus(-) 0.10won, down 1.25won from the opening price.
The overnight, an ultra-short-term tenor, stood at minus (-) 0.17won, while the T/N moved 0.005won up from the opening to minus (-) 0.055won by the close.
Market participants pointed to sell-offs in the forward exchange market by some large heavy-industry affiliates (Hanwha Ocean). As a result, weakness in short-term instruments and changes in the short- to long-term spread were observed at the same time.
Meanwhile, it was said that there was a cautious mood ahead of the Monetary Policy Board (MPB) decision. Foreign-currency funding flows and policy variables could affect future swap point volatility.
Sources: 연합인포맥스
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