twd 0213

17:18 13Feb2009 RTRS-Taiwan dollar at new 4-1/2-yr closing low, eyes GDP

TAIPEI, Feb 13 (Reuters) - The Taiwan dollar fell for a seventh straight session on Friday as investors, wary of dismal GDP data next week, sold the currency and the central bank pushed it even lower to help troubled exporters, dealers said.
The Taiwan dollar finished at T$34.050 to the U.S. dollar, a new 4-1/2-year closing low and down from the previous closing price of T$34.025.
The local currency has lost 3.6 percent since the beginning of the year on economic worries and U.S. dollar purchases by the central bank, which seeks to push the Taiwan dollar lower to help exporters hobbled by declining orders.
Volume on the main Taipei Forex Inc exchange was a thin $691 million, but higher than $517 million a day earlier.
"Everyone is speculating on the expectations for next week's GDP figures," said a dealer in Taipei.
A Reuters poll estimates that the economy in the fourth quarter contracted by a record 5.6 percent from the same period a year earlier [ID:nTP367581]. The government will announce the figures on Wednesday.
Taiwan's central bank also bought U.S. dollars late on Friday to push the local currency lower, helping exporters. A few exporters were in the market on Friday, dealers said.
The Taiwan dollar has recently hovered at 4-1/2-year lows, allowing exporters to buy more of it with U.S. currency for cash needs at home.
The local currency traded flat through much of the session as investors waited for market-moving news or stayed away for fear the central bank would intervene, dealers said.
"As the currency rate stays near T$34, everyone is watching to see the government's attitude," said a dealer in Taipei.
On the smaller Cosmos exchange , the Taiwan dollar closed at T$34.046 to the U.S. dollar from the previous close of T$34.020.
(Reporting by Ralph Jennings and Lin Miao-jung, Editing by Jacqueline Wong)
((ralph.jennings@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: ralph.jennings.reuters.com@reuters.net))
Keywords: MARKETS TAIWAN CURRENCY/

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Friday, 13 February 2009 17:18:14RTRS [nTP14022] {EN}ENDS