TWN dlr 0331

17:14 31Mar09 RTRS-Taiwan dollar strengthens on exporters' deals* Taiwan dollar extends gains in late trade * Exporters sell U.S. dollars at end of month, quarter * Light central bank intervention curbs strength (Adds close, quotes) TAIPEI, March 31 (Reuters) - The Taiwan dollar firmed on Tuesday on exporters unloading U.S. dollars at the end of the month and quarter, although the central bank lightly intervened to cap the local currency's gains. The Taiwan dollar ended firmer at T$33.917 to the U.S. dollar from the close of T$34.015 in the previous session, when it posted its biggest fall in 1-½ months. Volume on the main Taipei Forex Inc exchange was thin at $733 million, lower than the previous session's $817 million. "Exporters were originally waiting for levels to weaken beyond T$34 to sell U.S. dollars, but in the end, they decided not to wait and sold actively in afternoon trade," said a dealer in Taipei. Exporting firms generally prefer a weaker Taiwan dollar because it allows them to convert U.S. dollars into more of the local currency to help boost their earnings. Dealers said the central bank bought some U.S. dollars later to try and prevent huge swings in the Taiwan dollar. The Taiwan dollar has gained 3.6 percent after hitting a 22-year low in early March as the stock market trended higher due to improvements in certain economic data from the island. Outside Taiwan, dealers were watching more developments in the U.S. auto and financial sectors for more leads. Earlier in the day, U.S. auto troubles sparked more appetite for safe-haven currencies, such as the U.S. dollar, which pressured the Taiwan dollar. On the smaller Cosmos exchange , the Taiwan dollar ended at T$33.915 to the U.S. dollar, stronger than the previous close of T$34.001. (Reporting by Lee Chyen Yee and Argin Chang, Editing by Jacqueline Wong) ((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.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] [EMRG] [FRX] [LEN] [RTRS] [TWD/] [TWD=TP] For Relevant Price Information, Double Click on one of these codes: Tuesday, 31 March 2009 17:14:01RTRS [nTP190533] {EN}ENDS