Samsung Electronics and SK hynix’s combined shareholder return plans worth more than 150 trillion won could push the won higher and add to dollar selling, market experts said Wednesday. NH Investment & Securities projected the won could strengthen to 1,340-1,350 per dollar as the U.S. dollar weakens. On Wednesday, the won closed at 1,384.8 per dollar in onshore trading, after recently moving from the 1,560-won range in June to the high 1,300-won range.
An employee sorts U.S. dollar bills at Hana Bank’s counterfeit response center in Seoul, July 3. Yonhap
Samsung Electronics and SK hynix’s combined shareholder return plans worth more than 150 trillion won ($108 billion) could trigger additional dollar selling and put further downward pressure on the won-dollar exchange rate, according to market experts on Wednesday.
NH Investment & Securities projected that the won could strengthen to the 1,340-1,350 per dollar range, citing the chipmakers’ large-scale shareholder return plans alongside broader weakness in the U.S. dollar.
The won-dollar exchange rate recently fell to the high 1,300-won range for the first time in 11 months, reversing sharply from just two months earlier, when it surged to 1,560 won in June, nearing the 1,600-won level. On Wednesday, the won strengthened 1.3 won to close at 1,384.8 per dollar in onshore trading.
