By Bob Chen and David Yong Jan. 7 (Bloomberg) -- Asian currencies rose, led by India’s rupee, as speculation the Federal Reserve will maintain near- zero interest rates bolstered demand for higher-yielding assets in emerging markets. India’s currency, the South Korean won and Philippine peso traded near the strongest levels in at least 15 months. Minutes of the Fed’s last Open Market Committee meeting released yesterday showed policy makers considered the possibility of extending stimulus measures to support an economic recovery. An official from the International Monetary Fund said yesterday the agency my raise its 2010 forecast for global growth this month. “The expectations were for higher U.S. interest rates and that’s now open for argument because we haven’t seen a solid recovery,” said Zaki Mokhtar, head of currency spot trading at RHB Bank Bhd. in Kuala Lumpur. “The dollar is sold off on that and this is supportive of regional currencies.” The rupee gained 0.5 percent to 45.63 as of 2:56 p.m. in Mumbai and rose as much as 0.7 percent to 45.56, according to data compiled by Bloomberg. The won climbed 0.1 percent to 1,135.35 per dollar in Seoul, having earlier touched a 15-month high of 1,129.42. The Philippine peso advanced 0.4 percent to 45.845. The International Monetary Fund will probably raise its 2010 global growth forecast, from 3.1 percent, said John Lipsky, the institution’s No. 2 official. Taiwan’s government reported today that exports climbed for a second straight month in December. Malaysia’s November shipments increased 3 percent, based on the median estimate of economists in a Bloomberg News survey before data later today. Taiwan’s overseas sales jumped 47 percent from a year earlier after rising 19 percent in November. Balance of Payments South Korea’s won climbed for a fifth day, the longest winning streak in almost four months, as the improving outlook for exports prompted foreign investors to add to their holdings of the nation’s shares. Samsung Electronics Co., Asia’s biggest maker of semiconductors, flat screens and mobile phones, posted fourth-quarter operating profit of about 3.7 trillion won ($3.3 billion), compared with a loss a year earlier. “The Korean won should be supported by a favorable balance of payments and the rising need to offset imported price pressures,” Wai Ho Leong, an economist at Barclays Plc in Singapore, wrote in a research note released today. “Although it has enjoyed a marked appreciation from its trough in March 2009, we believe it is still fundamentally undervalued on a trade-weighted basis.” The Bank of Korea said its interest-rate policy will help support the nation’s economic recovery even as the central bank remains on guard against “imbalances” caused by low borrowing costs. Governor Lee Seong Tae will maintain the seven-day repurchase rate at 2 percent tomorrow, according to all but one of 14 economists surveyed by Bloomberg News. Stronger Peso The Philippine peso climbed toward a 16-month high of 45.72 versus the greenback, reached two days ago, on speculation the government’s sale of $1.5 billion of dollar-denominated bonds will bolster demand for the local currency. The offer, which will raise funds for reconstruction after storms last year, was “heavily oversubscribed, highlighting the continued global investor support,” Treasurer Roberto Tan said in an e-mailed statement. The government received bids worth more than six times the debt it offered. “We’re now heading back to a stronger peso,” said Antonio Espedido, treasurer at China Banking Corp. in Manila. “Because of the size of the subscription, this only proves the risk appetite for emerging markets has increased and the Philippines is benefiting from it.” Indonesia plans to sell as much as $4 billion of U.S. currency notes, while Vietnam is seeking to raise as much as $1 billion, people aware of the plans said this week. Elsewhere in Asian trading, the Indonesian rupiah was unchanged at 9,235 per dollar, after yesterday strengthening 1.4 percent. Malaysia’s ringgit rose 0.2 percent to 3.3705. China’s yuan was little changed at 6.8277 and the Taiwan dollar traded at NT$31.877 from NT$31.875 yesterday. To contact the reporters on this story: Bob Chen in Hong Kong at bchen45@bloomberg.net; David Yong in Singapore at dyong@bloomberg.net.

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