South Korea clears 1.5 billion dollar SpaceX IPO demand
South Korean authorities have processed approximately 1.5 billion dollars in foreign exchange demand tied to the SpaceX initial public offering. This resolution is expected to alleviate recent downward pressure on the won which hit a seventeen year low last week due to high dollar demand from domestic investors.
Insights:
South Korea cleared approximately $1.5 billion in dollar demand linked to the SpaceX IPO, removing a major headwind for the local currency. The outflow previously drove the won to a 17-year low despite a near-record $28.3 billion current-account surplus in April. For investors, the resolution signals an end to the one-off volatility that recently made the won one of Asia's worst performers.
