twn dlr 0225.

17:06 25Feb09 RTRS-Taiwan dollar rises on exporters, stock gains * Taiwan dollar firms on stock market rise, exporter deals * Dealers expect currency to depreciate again (Updates through close) TAIPEI, Feb 25 (Reuters) - The Taiwan dollar firmed on Wednesday, helped by exporters' purchases and a domestic stock market rise, but many investors stayed on the sidelines on fears that the local currency would change course and weaken again. The Taiwan dollar rose to an intraday high of T$34.646 against the U.S. dollar, but pared some of its early gains to end at T$34.747, up from Tuesday's close of T$34.797. Volume on the main Taipei Forex Inc exchange was thin at $627 million, lower than Tuesday's $722 million. "There were some exporters trading in the early session, but the Taiwan dollar followed the South Korean won to trim some gains in the afternoon," said a dealer at a local bank. Exporters usually trade near the end of the month for cash needs at home. The won erased most of its early gains on Wednesday as investors focused on indications of change in the government's stance on the foreign exchange markets. [ID:nSEO59279] "The stock market gains also lifted sentiment today," said another dealer in Taipei. Taiwan stocks <.TWII> hit a one-week closing high on Wednesday after a Wall Street rally overnight. Despite the day's advance, the Taiwan dollar is likely to trade in a tight range between T$34.5-T$34.8 in the near term and eventually resume its downward trend to test around T$35 due to the bleak economic outlook, dealers said. On the smaller Cosmos exchange , the Taiwan dollar firmed to T$34.736 from Tuesday's close of T$34.770. (Reporting by Gina Chang; Editing by Jonathan Hopfner) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:gina.chang.thomsonreuters.come@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/
For Related News, Double Click on one of these codes:[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP] For Relevant Price Information, Double Click on one of these codes: Wednesday, 25 February 2009 17:06:32RTRS [nTP63706] {EN}ENDS