The won recovered after a transaction involving approximately $1.5 billion in exchange for dollars to subscribe to SpaceX's IPO in South Korea entered its final stages, easing pressure on the currency market.
June 10, 2569 at 13.42:XNUMX a.m., Reuters reported that There is a massive demand for dollars to support investment in the SpaceX IPO. One of the factors that had been pressuring the South Korean won in recent weeks has been largely resolved, easing the pressure on the currency, a source familiar with the foreign exchange market told Reuters on Wednesday (June 10).
The news source stated that The $1.2-1.5 billion purchase order that South Korean investors are using to participate in the SpaceX IPO has entered its final stage, and the currency exchange process is nearing completion.
Earlier, Reuters reported that Elon Musk's SpaceX had attracted overwhelming interest from global investors, with subscriptions exceeding $250,000 billion, compared to the company's required funding of only $75,000 billion. This makes the IPO likely to be the largest stock offering in history.
Following the report, the won continued to strengthen, trading at 1,524.1 won per dollar in the afternoon, up 0.56%.
Sources say the market is closely watching the impact of the demand for dollars to subscribe to SpaceX shares, as the amount is substantial compared to the liquidity of the won in the currency market, with the exchange value estimated at around $1.2-1.5 billion.
However, once the currency conversion is nearing completion, the downward pressure on the won from the SpaceX IPO deal will disappear, and market supply and demand will return to normal.
In recent weeks, the high demand for dollars from both institutional and large individual investors in South Korea to participate in the SpaceX IPO allocation has been one of the factors driving the won to its lowest level in 17 years last week.
This pressure is occurring even though South Korea had a high current account surplus of $28,300 billion in April, reflecting the fact that the dollar-won trading market, which has an average daily trading volume of around $14,000 billion, remains relatively sensitive to large demand for dollars during periods of market volatility.
Although the won recovered in the short term, it remains one of the weakest currencies in Asia, having fallen by about 5% against the US dollar since the beginning of the year.
Meanwhile, South Korean authorities are continuing to intensify measures to protect their currency. The Bank of Korea (BOK) and the Financial Supervisory Service (FSS) are preparing to conduct a joint inspection of major banks involved in foreign exchange transactions for the first time in 14 years, in order to prevent speculation and manipulation of exchange rates for personal gain.
refer : www.reuters.com
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