Bloomberg ran an interesting article this morning. The article contained an interview with Jens Nordvig, a senior currency strategist in New York at Goldman Sachs (NYSE: GS). Nordvig said the top currency trade for 2008 will be to sell the U.S. dollar against a basket of Asian currencies, including the currencies of Malaysia, Singapore and Taiwan.

In the article, Nordvig cites two reasons why this trade should work next year:

1. Asian central banks should allow faster currency appreciation to offset inflation in their home countries
2. It is becoming costlier for the central banks to enter foreign exchange market

The Malaysian, Singaporean and Taiwanese currencies will each gain about 5% to 10% against the dollar in the next year, according to Nordvig.

Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.