FLGS – Global Finance Report

Asian currencies rose, led by the South Korean won and Malaysian ringgit prompted speculation the Federal Reserve will keep interest rates low to stimulate demand for high-yield assets in emerging markets.

The strengthening of the won and the ringgit occur every day throughout the week. The appreciation continued as the impact of the Fed’s decision Open Market Committee last month that was launched yesterday, to extend the stimulus package to sustain economic recovery. Export performance of Taiwan and Malaysia is estimated to rise for two months.

“Expectations that the U.S. appears to raise rates, but invites a lot of arguments, as they are not solid recovery. Action to sell U.S. dollars occurs in response to the news and would encourage regional currencies,” said Zaki Mokhtar, head of foreign exchange spot trading on the RHB Bank Bhd Kuala Lumpur.

Won rose 0.3% to 1133 at 12:30 pm in Seoul, which had touched the highest level in 15 months of 1129.42.

Malaysian ringgit reached the highest position in 6 weeks at 3.3620, and rose 0.2% continues to 3.3710 per U.S. dollar. Philippine peso also gained 0.3% to 45.895 Taiwan dollars and increased 0.1% to NT $ 31,833.

John Lipsky senior International Monetary Fund (IMF) said the institution is likely to raise 2010 global growth estimate later this month, from 3.1% position.

The median estimate of economists surveyed showed exports to Taiwan in December jumped 45% from the previous year and Malaysia rose 3% for 3 months.

South Korean Won continues to strengthen for the fifth day, the longest movement in almost 4 months, along with the improvement in export performance which triggered the entry of foreign investors borong local shares.

Samsung Electronics Co., the largest semiconductor manufacturers in Asia, as well as flat screens and mobile phones, recording Fourth quarter earnings of about 3.7 trillion won (U.S. $ 3.3 billion). In fact, the same period last year, the company still suffered losses.

“South Korean Won support payments from the state improved. Despite the strengthening occurred in March 2009, but we believe it is fundamentally the won is still undervalued,” said Leong Wai Ho, an economist at Barclays Plc in Singapore.

The Bank of Korea said the interest rate policy will support economic growth even as the central bank should maintain the imbalance caused by low interest rates. According to the 14 economists surveyed, Governor Lee Seong Tae believed to hold interest rates at 7 days 7% tomorrow.

Philippine peso rose to the highest position in 16 months at 45.72 per dollar two days ago, due to speculation the U.S. dollar bond sale by the government worth U.S. $ 1.5 billion. This action sparked buying of the local currency.

“We go back to see the strengthening of the peso,” said Antonio Espedido, treasurer at China Banking Corp. in Manila.

Indonesia plans to sell bonds worth U.S. $ 4 billion, and Vietnam is looking for funds amounting to U.S. $ 1 billion.

Rupiah strengthened 0.1% to 9230 per dollar today, after yesterday rose to 1.4%. Thai Baht is also strong 0.1% to 33.14 yuan and China are not much changed at 6.8277