South Korea's 1-Year FX Swap Points Fall to Minus 12.70 Won on August 5 Amid Asset Swap Inflows

According to Yonhapinfomax, South Korea's 1-year FX swap points fell to minus 12.70 won on August 5, down 0.30 won from opening. The 6-month and 3-month tenors declined to minus 6.00 won and minus 2.25 won respectively.

The decline reflected asset swap inflows and a sharp drop in domestic bond yields as foreign exchange reserve accumulation demand eased. Market dealers noted that won funding costs declined following the completion of reserve requirement dates, allowing excessively high swap points to normalize.