Asian currencies end higher on Nasdaq, oil prices report

Asian currencies end higher on Nasdaq, oil prices report

SINGAPORE (Dow Jones): Stunning gains on Nasdaq, easing global
oil prices and expectations of U.S. interest rate cuts next year
colluded to bolster most Asian currencies late Monday, market
watchers said.

The Indonesian rupiah closed higher Monday after the nation's
top economics minister said he's ordered state-owned companies,
including oil giant Pertamina, to buy dollars direct from the
central bank rather than on the market.

Big companies such as Pertamina need millions of dollars to
repay debt and fund imports, which is putting downward pressure
on the rupiah.

Senior Economic Minister Rizal Ramli's order Monday that the
companies should get their dollars from the central bank will
ease that pressure, traders said.
" This is significant news," said Simon Flint at Bank of
America. "Rather than going to the market, the state-owned
companies will be trading privately with the central bank," he
said.

After trading most the day around Rp 9,530, the dollar slumped
on the news to close Asian trading at Rp 9,430.

"They are painting a global backdrop which is stable and
favorable for regional markets," said Vasan Shridharan, a
treasury economist at Standard Chartered Bank.

The South Korean won led the region's rise, with the Singapore
dollar and the Philippine peso just marginally higher.

The dollar finished at 1,183.0 won, down from Friday's close
of 1,190.30 won.

Some participants were betting for further strength in the
won, but analysts said a slowdown in South Korea's exports and
economic growth could force the government to keep a rein on the
currency's gains.

"The dollar could break the 1,180 won level, but part of the
won's weakness is due to macroeconomic factors, the slowing
growth, and we don't see any signs of recovery from the economic
side," said Suktae Oh, a Seoul-based economist at Salomon Smith
Barney/Citibank.

The New Taiwan dollar was marginally weaker as a possible
delay in a hike in Taiwan's weighting in the MSCI indexes next
year nullified the impact of Nasdaq's rise on the local bourse,
dealers said.

At 0800 GMT (3:00 a.m. EST), the U.S. dollar ended higher at
NT$33.035 from Friday's close of NT$33.020, but down from the
intraday high of NT$33.075 reached in early trade.

Elsewhere, seasonal remittance inflows from Filipinos working
overseas contributed to the Philippine peso's strength, dealers
said.

The dollar closed at 49.945 on the Philippine Dealing System,
down from 50.050 pesos at the previous close.

The rupiah's strength spilled over to the Singapore dollar,
which was at S$1.7338, compared with S$1.7360 late Friday.

The Thai currency was stable at 43.515 baht against the
dollar, with the closure of Thai financial markets Monday for a
national holiday and offshore participants ignoring the currency
following the authorities' recent crackdown on speculative
trading.