Zurich, Switzerland

The Singapore dollar posted its biggest daily increase in 20 months yesterday following news that its economy had fully recovered from the depths of the credit crisis.

Compared to 12 months earlier, the Singapore economy as measured by GDP (gross domestic product) grew 13.1% -- the strongest pace since 1994. The S$ immediately reacted to the bullish growth report, rallying 1.36%. Other currencies in the region also appreciated, except the Japanese yen.

While the EUR continues to struggle amid a reluctant mind-set to bailout Greece and, possibly, other nations with rising budget deficits, Asian economies mostly harbor undervalued currencies. Asian nations largely sport budget and trade surpluses while the eurozone is increasingly home to rising trade and budget deficits.

According to the Asian Development Bank (ADB), currencies in China, Hong Kong, Malaysia, Taiwan and Singapore are about 20% undervalued vis-à-vis the U.S. dollar while currencies in the Philippines and Thailand are about 10% overvalued.

For investors, going long several Asian currencies while avoiding or even shorting the EUR is probably a shrewd trade over the next several years.

In the United States, investors can tap into FDIC-backed foreign currency accounts at Everbank, including the Chinese RMB and the Singapore dollar. Both units are likely to dominate Asian currency appreciation over the next decade and beyond while the EUR struggles under the weight of exploding deficits and, possibly, a defiant Germany resulting in more currency chaos.