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17:46 24Mar09 RTRS-Taiwan dollar eases, ends 6-day winning streak
* Taiwan dollar ends 6-day winning streak on c.bank
* Taiwan dollar could weaken towards T$34, dealers say
* Weak February export orders could weigh on Taiwan dollar

(Updates closing values, adds details)
TAIPEI, March 24 (Reuters) - The Taiwan dollar eased slightly on Tuesday, ended a six-day winning streak, as the central bank bought U.S. dollars to taper any gains in the local currency caused by exporter deals and foreign fund inflows.
The Taiwan dollar was firming for most of the session, hitting a high of T$33.729, but the central bank intervened in the final minutes of trade to drag it down into negative territory.
The local currency closed at T$33.788, slightly weaker than Monday's close of T$33.785.
"The central bank was sending a very clear message today that it still wants the Taiwan dollar to be weak," said a dealer in Taipei. "It was climbing the entire day until the final few transactions when there was a sudden reversal."
Volume on the main Taipei Forex Inc exchange was thin at $865 million, lower than Monday's $1.106 billion, as some dealers were sidelined because they were wary of the central bank.
Dealers said the Taiwan dollar was likely to depreciate in the coming days as the central bank actively intervened to keep the local currency down.
Many companies in Taiwan are heavily dependent on exports and trade in foreign currencies such as the U.S. dollar, and a weaker Taiwan dollar would mean they get more of the local currency and increase their competitiveness in the global market.
"The Taiwan dollar could test the T$34 level in the next few days," said another dealer in Taipei. "I really don't think anyone is expecting the Taiwan dollar to climb any more from now on."
Other dealers also said Taiwan's February export orders, which were released minutes before the foreign exchange market closed and showed a 22.3 percent decline from the year before, could also weigh on sentiment in coming days. [ID:nTP327844]
On the smaller Cosmos exchange , the Taiwan dollar was trading for T$33.772 compared with Monday's close of T$33.770. (Reporting by Lin Miao-jung and Kelvin Soh, Editing by Jacqueline Wong)
((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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Tuesday, 24 March 2009 17:46:57RTRS [nTP258015] {EN}ENDS