Samsung, SK hynix shareholder returns seen driving further won strength
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’…
The combined shareholder return plans of Samsung Electronics and SK hynix, worth over 150 trillion won ($108 billion), may drive further downward pressure on the won-dollar exchange rate, according to market experts. These plans, announced by the chipmakers, include Samsung's 40 trillion won and SK hynix's 90 trillion to 110 trillion won worth of dividends and share buybacks.
This could lead to increased conversion of dollar holdings into won, potentially strengthening the won to between 1,340 and 1,350 per dollar, as projected by NH Investment & Securities. The won-dollar exchange rate recently dropped to the high 1,300-won range for the first time in 11 months, reversing a recent trend that saw it surge to 1,560 won in June.
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