KRW has been one of the under-performing in Asian currency baskets excluding Japan in May falling by 3.2% against the USD. We’ve summarized up briefly on how it would have an adverse impact on won.Manufacturers’ confidence: The lackluster negative sentiment is increasing in June’s business survey. Manufacturers’ business confidence to falls at 77 for June from 82 in May and the Confidence index for non-manufacturers declined to 76 for June from 78 for May.Weak domestic demand and an uncertain economic outlook were cited as major obstacles confronting businesses.Trade balance: Export growth was sluggish and tapered further from -8.0% to – 10.9% on YoY basis which is the lowest since September 2009, while imports remained in deeply negative territory at -15.3% on YoY basis.Annual CPI: Headline inflation rose 0.5% from previous 0.4% on YoY basis, while Core CPI rose 2.1% from previous 2.0%. CPI inflation was increased for first time in 7 months in May.IP MoM: Industrial Production in South Korea decreased -1.2% in April of 2015 from previous -0.3%. Improved GDP Q1: The Gross Domestic Product in South Korea expanded 0.8% in the Q1 of 2015 over the previous quarter.
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