World-Beating South Korean Won Hits a Wall

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June 16 (Bloomberg) –- In today’s “Global Outlook,” Bloomberg’s David Ingles takes a look at the projections for the South Korean Won on Bloomberg Television’s “On The Move Asia.” (Source: Bloomberg)

The headlines in recent days.

Lately it has been a bit of a war.

Here is a dashers the outlook with david english.

The south korean wan is the best performing among 31 major currencies that we have tracked.

Analysts are predicting that mr.

Wan will be hitting a wall soon.

Over the high exchange rates.

The me show you a chart which tracked first the won.

That is the line in white.

The line in yellow as a foreign exchange reserves which rose to a record 360 one billion u.s. dollars last month.

The take away from this chart is that the bank of korea is buying up the currency.

Essentially, one of the most accurate forecasts for the currency.

He says that intervention is certainly a hurdle.

Caution is needed from here.

He expects the won to weaken.

The economy's exports are getting fairly expensive.

Another chart i want to show you is a six-year chart of growth in south korean exports.

It fell negative only three times in the past six years.

First, global financial crisis, second when he had rival exporting in the end.

The third is here touch was last month when you did see the yen -- the won hitting six-year highs.

Normally you'd see that in other countries, but south korea's export accounts for over half of the gdp.

The biggest most well-known corporate company gets over 90% of its sales from abroad.

In fact, the so-called wall appears to be, if you look at the chart, right below where we are now, 1020 against the u.s. dollar.

That is where we see officials come out and say how concerned they are.

If history is any guide, it will be ok.

They will step in and buy up more u.s. dollars.

Since we are talking about south korea, the national team opens the world cup campaign on wednesday morning against

This text has been automatically generated. It may not be 100% accurate.


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