South Korea’s won and Malaysia’s ringgit led an advance in Asian currencies after the U.S. Federal Reserve said it has tools to stimulate growth, fueling investor appetite for emerging-market assets. Fed Chairman Ben S. Bernanke told a gathering of central bankers in Jackson Hole, Wyoming on Aug. 26 that the U.S. economy is recovering and the central bank still has a “range of tools” it could use to help the economy. The won rose for a second day as South Korea’s current-account surplus widened to a nine-month high. “Some uncertainty has been taken out of the market because Jackson Hole has been and gone,” said Stuart Oakley, Singapore- based head of emerging markets foreign exchange for Asia at Royal Bank of Scotland Group Plc. “The Fed stands ready to step in and provide some form of monetary easing when markets get distressed. On a multi-week horizon, Asian currencies will go higher against the dollar.” The won climbed 0.5 percent to 1,076.48 per dollar as of 11:12 a.m. in Seoul, after gaining 0.5 percent on Aug. 26, according to data compiled by Bloomberg. The ringgit strengthened 0.3 percent to 2.9710 and Taiwan’s dollar rose 0.1 percent to NT$29.029. China’s yuan gained 0.05 percent to 6.3839. Policy makers met for three days from Aug. 26 to discuss ways to bolster long-term economic performance. They gathered as banks from UBS AG to Citigroup Inc. cut their forecasts for global expansion and predicted the Fed, the European Central Bank and the Bank of Japan will keep their benchmark interest rates at or close to record lows through next year. Current-Account Surplus Bernanke stopped short of suggesting that the Fed will undertake a third round of government bond buying. His announcement that the Fed’s policy-setting committee will meet Sept. 20-21 raised the prospect more time may allow him to strike a stronger consensus among colleagues. “Market players are interpreting Bernanke’s speech in an optimistic way, weighing possibilities for another stimulus in the near future,” said Ryoo Hyun Jung, chief currency dealer with Citibank Inc. in Seoul. “The speech has shifted sentiment from risk-averse to some risk-taking.” The Bank of Korea said today the current-account surplus rose to $4.94 billion in July, from a revised $2.03 billion in June. The current account is the broadest measure of trade, tracking goods, services and investment income. South Korean Finance Minister Bahk Jae Wan said separately that inflation may remain high in August before moderating to a 3 percent range next month. The government may have to cut this year’s economic growth forecast of 4.5 percent amid increasing downside risks, he added. Ringgit Gains The ringgit gained the most in a week before Malaysia’s financial markets shut from Aug. 30 to Sept. 1 for holidays. “Bernanke’s statement boosted risk appetite for most Asian currencies,” said Wong Yoong Han, a currency trader at Alliance Bank in Kuala Lumpur. “The ringgit may, however, trade in a tight range as market players are reluctant to take positions ahead of the holiday break.” Elsewhere, the Singapore dollar was little changed at S$1.2065 and Thailand’s baht was steady at 29.98. Local financial markets are closed in Indonesia and the Philippines for holidays. To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net. To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.

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