# KRW: Hedging policy changes point to less selling in USD/KRW forwards - ANZ — Octa

> 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.

- Date: 2017-06-13 · published 2017-06-13T12:00:00.000Z
- Category: macro · region South Korea · magnitude low
- Page: https://feedsoft.ai/events/70747-krw-hedging-policy-changes-point-to-less-selling-in-usd-krw-forwards-anz-octa
- Commodities: [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md)

## Why it matters

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.

## Read by commodity

- USDKRW: bullish ▲

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/453115/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.