Tuesday, March 10, 2009

twn dlr 0310

17:21 10Mar09 RTRS-Taiwan dollar logs biggest gain in almost 3 months * Taiwan dollar has biggest percentage rise in near 3 months * Taiwan dollar hits 3-week high * Funds, won boost Taiwan dollar, central bank curbs (Updates closing values) TAIPEI, March 10 (Reuters) - The Taiwan dollar firmed to a three-week closing high on Tuesday, logging its biggest gain in nearly three months due to some foreign fund inflows and tracking gains in the South Korean won. The Taiwan dollar hit a high of T$34.540 in afternoon trade, but later erased some gains to close the session at T$34.600, its strongest close since Feb. 16. It closed at T$34.815 on Monday. The Taiwan dollar rose 0.62 percent on the day, its biggest daily gain since Dec. 17 when it strengthened nearly 1 percent. Volume on the main Taipei Forex Inc exchange was active at $1.21 billion, higher than the paltry $536 million recorded the day before. "The South Korean won really helped things today," said a dealer in Taipei. "In the absence of any clear indicators or global trends, investors usually look to the won for an indication on where the Taiwan dollar should go." The won had its best day in nearly two months on Tuesday, finishing firmer at 1,510.5/1.5 per dollar as signs of improving risk appetite sparked bargain hunting. [ID:nSEO325630] Taiwan and South Korea share similar export-oriented trade profiles that rely on their respective high-tech industries, and the Taiwan dollar sometimes takes its cues from the won. Foreign fund inflows also helped strengthen the dollar further, setting the stage for a further rally on the stock market as funds flush with cash wait for an opportunity to invest in the local equities market. "I don't think the central bank's
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