The Euro Is A Big Risk Target. Don'T Get It Wrong.

Morgan Stanley's top foreign currency strategist told clients last week that they were ignoring the risks of the eurozone.

Morgan Stanley, head of global currency strategy in New York, Hans Redeker, said in an interview in Singapore that Asian currencies will weaken next year because

It is a drag on the export oriented economies of Asia.

The euro has fallen to its lowest level in seven months as the market expects the ECB to increase its monetary easing in December 3rd.

So far this year, China

The number of eight months has dropped, compared with 10 months in South Korea and 9 months in Taiwan.

In the euro area, exports in September increased by eighth months in a row.

"You should not underestimate the impact of the euro," Redeker said.

Europe has an "important manufacturing base", affected by a slowdown in China's economy, and Asian companies face

And excess capacity.

Morgan Stanley predicts that by the end of 2016, the won will depreciate by 12% to 1300 against the dollar at the end of, and the new yuan will fall 5.5% to 1.49 against the US dollar, and the Taiwan dollar will fall 9.2% to 36 against the dollar.

The bank also forecasts that the yuan will slide by 7.5% to 6.91 against the US dollar, and the euro will fall to parity with the US dollar.

Goldman Sachs's prediction for the won and the new won is the same as that of Morgan Stanley, which will fall to 6.80 and 34 respectively.

Both banks' forecasts are lower than those predicted by Bloomberg investigative strategist.

Hyundai Motor said last month that the depreciation of the euro pushed up costs, resulting in a third decline in its 23% quarter earnings.

Europe accounts for 12.5% of South Korea's exports and 18% of China's exports.

This year, Taiwan's exports to Europe fell by 12.1%, a drop of 9.6% over the same period.

According to Peng Bo compiled data, as of the end of 10 months in 12 months, the import of Korean cars increased by 68% over the whole year of 2013, of which BMW, Volkswagen and Mercedes Benz made the growth of cars.