The Malaysian ringgit is at its highest level in over ten years following US interest rate cuts, which are expected to boost demand for investment in Asian countries.
The Chinese yuan has also risen to its highest value since 2005 when it abandoned a currency peg to the US dollar (Malaysia also removed the currency peg in 2005).
"As the US economy gets bashed, Asia will be the growth story in 2008," Yeo Chin Tiong, head of treasury at OSK Investment Bank in Kuala Lumpur, told Bloomberg.
"The ringgit should be stronger than this as capital flows into the region," he added.
Mr Yeo also expects other Asian currencies will continue to appreciate as the central bank in China uses the yuan to depress inflation.
"The yuan will have to appreciate because there is a big cost to sterilising liquidity there," he said.
"Other regional currencies may have to follow to avoid any speculative attacks."
Further analysis of Asian currency fluctuations could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
