On October 6, USD/JPY stood at 158.19, up 0.15%, while USD/KRW fell to 1,337.58, down 0.36% on the day. Two Asian export currencies moving in opposite directions force a recompute of delivered cost booked in local currency.

The yen leg matters most. Japanese-refiner procurement priced in JPY, or back-to-back transfers hedged in JPY, see a stronger yen lift delivered cost in local terms and shave margin; a softer won eases tenor pressure on KRW-settled buyers but shrinks the dollar value of won received by sellers. The two do not net out.

In practice, CIPS direct clearing swaps the dollar leg for RMB or bilateral local currency, cutting one FX exposure. Where hedging is unavoidable, non-deliverable forwards beat spot for this split—spot cannot flatten two opposing lines. Days of intra-Asian divergence are when transfer traders lose on wrong currency allocation and save by dropping the dollar leg via CIPS.