Won strengthens after SK hynix ADR offering
The South Korean won posted its fastest monthly appreciation since March 2009, trading at 1,424 per U.S. dollar by 3:30 p.m. Friday, up 125.4 won from end-June and gaining about 7.95 percent in July according to exchange and Yonhap Infomax data. Market participants linked the surge mainly to large U.S. dollar inflows after SK hynix raised roughly 40 trillion won through a Nasdaq ADR offering and converted proceeds into local currency. The won also recovered from a July 1 intraday low of 1,599.2, and economists said stronger growth and expected further Bank of Korea rate hikes could sustain the currency's upward trend.
Won rose 7.95 percent in July after SK hynix ADR inflows
Context
The won fell to about 1,599.2 per dollar on July 1. SK hynix sold ADRs and converted about 40 trillion won into local currency. The won may keep strengthening if inflows continue and the Bank of Korea raises rates.
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