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ANZ analyst Irene Cheung said South Korea's largest pension fund is changing its hedging and asset allocation policies, moving toward a zero-hedge position. This is expected to reduce near-term USD/KRW forward selling, and over time to lift spot USD/KRW buying as more assets are allocated offshore unhedged.
Increased unhedged offshore allocation adds sustained dollar demand that pushes the won weaker, which raises the won cost of dollar-priced feed imports for Korean buyers.
octaafrica.netJun 13, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
