South Korea's 1-Year IRS Rate Falls 2.75bp as Stocks Dive Ahead of July Rate Decision

According to Yonhap Infomax, on July 9, South Korea's 1-year interest rate swap (IRS) fell 2.75 basis points to 3.4450%, marking the third consecutive trading-day decline. Offshore investors and local securities firms have been aggressively selling short-term positions ahead of next week's central bank monetary policy committee meeting.

Simultaneously, the KOSPI index dropped to the 7,200 level following a two-day decline of roughly 5%, while the dollar-to-won exchange rate fell to 1,498.10 won—the first time it has broken below the 1,500 won mark in approximately six weeks. Market participants attribute the moves to easing concerns about consecutive rate hikes following recent weakness in equities and currency.