Goldman Sachs sees danger for Asia's top performing currency

According to Goldman Sachs Inc., the South Korean Won has shown resilience to the ongoing tensions on the peninsula, however, the calm may not last longer, Bloomberg reports.

Goldman Sachs adds heightened geopolitical risk, domestic political strains and punitive action by China could turn investors against the won, following a run that has seen the currency gain 5.6% this year.

In wake of reports of the US deploying Thaad defense system to counter North Korea, Goldman Sachs estimates the travel curbs could cut South Korea’s tourism revenue by about $5 billion. Around 111,000 visitors have canceled trips to the holiday hotspot Jeju, according to the local government, and Chinese carmakers are withdrawing from a trade show on the island scheduled for this month.