By Bob Chen March 30 (Bloomberg) -- Asian currencies rose, led by South Korea’s won, on speculation global funds will pour more money into the region to tap the world’s fastest economic growth. The won strengthened for a third day after a Bank of Korea survey showed Korean manufacturers are the most confident in at least seven years and Goldman Sachs Group Inc. raised its forecast for the currency. Thailand’s baht approached a 22-month high after the government increased its 2010 economic growth estimate to as much as 5 percent, 1 percentage point more than it forecast in December, and foreigners bought more of the nation’s equities than they sold for a 25th day. “Risk appetite’s up and fundamentally the news in Asia is really positive,” said Mitul Kotecha, the Hong Kong-based head of global currency strategy at Credit Agricole CIB. “There’s evidence of strong flows coming into the region and that’s helping to boost Asian currencies as well. We’re still bullish on Asia for the rest of the year.” The won rose 0.4 percent to 1,131.05 per dollar as of 1:31 p.m. in Seoul, according to data compiled by Bloomberg. The baht gained 0.1 percent to 32.33 and Malaysia’s ringgit added 0.2 percent to 3.2605. The ringgit has risen 4.6 percent this quarter, Asia’s best performance. The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-used currencies excluding the yen, was headed for its best close since August 2008. Shares in South Korea, India and Thailand have together this year attracted some $10 billion from abroad, exchange data show. Won Upgrade An index measuring manufacturers’ expectations in South Korea climbed to 105, the highest since the central bank began publishing monthly figures at the start of 2003. Goldman Sachs raised its three-month forecast for the won to 1,100 per dollar, from 1,150, according to a research note published today. A U.S. government report yesterday showed consumer spending climbed for a fifth month in February, adding to evidence that demand is picking up in Asia’s biggest export market. The region’s developing economies will expand 8.4 percent this year, outpacing growth of 2.7 percent in the U.S. and 1 percent in the euro region, the International Monetary Fund forecast in January. The baht has gained 3 percent this year, poised for a fourth quarterly advance, as global funds pumped $1.2 billion into the stock market. A Bank of Thailand report tomorrow is expected to show industrial production increased 28 percent from a year earlier in February, a sixth straight gain, based on the median forecast of economists surveyed by Bloomberg. “The baht and the Asian currencies continue their trend” of appreciation, said Nalin Chutchotitham, a foreign-exchange analyst at Kasikornbank Pcl in Bangkok. “A steady stream of funds is coming in and the growth story stays.” Yuan Bets The yuan’s 12-month non-deliverable forwards advanced 0.2 percent to 6.6550 per dollar, the biggest gain in four weeks, on speculation faster economic expansion and accelerating inflation will persuade China to let the currency resume appreciation. The yuan was allowed to strengthen 21 percent in three years before the central bank adopted a de facto peg of about 6.83 per dollar in July 2008 to help Chinese exporters survive a global recession. Gross domestic product is likely to increase about 10 percent this year, following growth of 8.7 percent in 2009, Chen Dongqi, a researcher at the National Development and Reform Commission, said today at a conference in Beijing. Consumer prices rose 2.7 percent from a year earlier in February, the biggest increase in 16 months, and the government aims to keep the pace of gains below 3 percent this year. Elsewhere, Indonesia’s rupiah strengthened 0.1 percent to 9,073 per dollar and the Philippine peso gained 0.2 percent to 45.22. The Singapore dollar rose 0.1 percent to S$1.3973. To contact the reporter on this story: Bob Chen in Hong Kong at bchen45@bloomberg.net

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