Wells Fargo - "A weakening yen has been a key Asian currency theme in recent months, with the Japanese currency down 12% against the U.S. dollar since early December. Clearly that move has implications for the relative competitiveness of the yen versus other Asian currencies.
(...) In contrast, China’s economy is showing signs of recovery. The renminbi has been resilient in recent months, remaining broadly steady since early December. Indeed, with ongoing economic recovery, any pickup in Chinese inflation should be consistent with continued steady gains in the renminbi. (...) Given the likelihood of a continued Chinese recovery and a steadily advancing renminbi, we view this backdrop as consistent with our forecast of appreciation for most Asian currencies in 2013. Clearly there may be limits to this analysis, and should Asian currency valuations reach extremes versus the yen, the region’s central banks may become more active in intervening in foreign exchange markets to smooth currency moves. Overall however, we expect Asian currencies to firm modestly during the next twelve months. We see the Korean won, Malaysian ringgit and Philippine peso among the more notable gainers, and see those currencies rising by around 4% to 5% during the coming year."