tw dlr 0415/ -0.2/ 33.79 /1020

16:50 15Apr09 RTRS-Taiwan dollar slips after S&P's island outlook cut * Taiwan dollar slips on increased risk aversion * Exporters provide some support on fears of further climbs * Dealers say they expect Taiwan dollar to climb this week (Updates closing indexes) TAIPEI, April 15 (Reuters) - The Taiwan dollar fell on Wednesday on fund outflows and increased risk-aversion after the island's outlook was cut by Standard & Poors, but exporter deals provided some level of support. The Taiwan dollar fell to the day's lowest level of T$33.790 at the close, weaker than Tuesday's close of T$33.620. Volume on the main Taipei Forex Inc exchange was moderate at $1.02 billion, higher than the $867 million recorded in the previous session. "Exporters are afraid that the Taiwan dollar may rise further, so some of them have started selling U.S. dollars," said a dealer in Taipei. "However, the stock market was falling and there was the S&P issue, so that put on a lot of pressure." Taiwan stocks <.TWII> fell 0.3 percent as financial shares slipped, snapping a four-session winning streak. [ID:nTP166633] The local currency was also pressured by Standard & Poor cutting its outlook on Taiwan's "AA-minus" credit rating to "negative" from "stable", saying the government's fiscal position could worsen over the next two to three years. [ID:nSP480954] However, most dealers remained optimistic that the Taiwan dollar could appreciate in coming days on the back of funds eager to invest in Asia's second-best performing stock market. "It might still weaken a little tomorrow, but things should stop there and begin a gradual appreciation again," said another dealer. On the smaller Cosmos exchange, the Taiwan dollar also weakened to T$33.785 from the previous close of T$33.607. (Reporting by Kelvin Soh and Yvette Chen; Editing by Nick Macfie) ((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)) Keywords: MARKETS TAIWAN CURRENCY/
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