Investors can bank on this trend by keeping faith with Asian equities, analysts say, though portfolios might be weighted in favour of companies that earn more of their revenues at home rather than abroad - in particular from exports to the US where consumers have ended a five-year shopping spree and the economy is in danger of tipping into recession.

Cuts to US interest rates by the Federal Reserve - aimed at preventing a recession - partly account for the dollar's renewed decline and the move on October31 to cut its Fed Funds rate by another 25 basis points to 4.5 per cent, following a rare 50 basis point cut in September, helped the greenback to record lows against its major rival, the euro which rose to US$1.4438, the highest since its 1999 launch and taking its year-to-date gains to almost 10 per cent.

'Looking ahead we would like things like reits generally, but specifically in Japan and Singapore; and also telecom stocks which are domestically focused, cash generating, have good earnings qualities and few concerns regarding commodity prices,' Mr Darby says.

The advice is similar to that given by UBS economist Edward Teather, who last month forecast in a research note to customers of the Swiss-based investment bank that Asian economies would continue to prosper despite the downturn in the US economy, and that their currencies would continue to strengthen against the dollar.

'With evidence of current account surpluses and positive growth surprises in Southeast Asia, we believe that regional currency strength against the US dollar will prevail in 2008,' said Mr Teather, who singled out the Philippine peso, the Malaysian dollar, the Thai baht and the Singapore dollar as candidates for appreciation.

'We also note that the forecast appreciation re-enforces the investment case for domestic rather than externally orientated enterprises.'

Peter Redward, Singapore-based chief economist, emerging Asia, for Barclays Capital, also foresees continuing appreciation for Asian currencies against the US dollar.

'Given that we expect growth in the region to remain strong and inflation to accelerate, central banks in the region will want to tighten money expansion,' Mr Redward tells Net Worth.

'But with US rates falling and likely to come down further it will be difficult for them to push rates higher without attracting unwelcome capital inflows, so we expect the region's currencies to continue to strengthen.'

From an asset allocation point of view this outlook favours Asian investments, says Mr Redward.

'But given that interest rates in the region remain relatively low still, and growth prospects are sound, we would also favour property over fixed income. So, our advice to investors would be - long Asian currencies, long property and short bonds.

'On the currency side, although we expect further appreciation of the renminbi, our preferred plays would be the Philippine peso, the Malaysian ringgit, the Singapore dollar and perhaps the Korean won.'

Any rebound by the US dollar will depend on how quickly the cuts to interest rates feed through into economic growth - generally a lagged response, says Mr Redward. 'There will be no rebound while growth and returns on capital remain low. But once the US economy stabilises, and if its current account deficit has contracted enough and it looks like the Fed may start tightening again, the dollar will begin to firm again.'