TWN DLR / 33.83 / 798 / +3.4

17:09 20Apr09 RTRS-Taiwan dlr slips for 5th session on US$ short-covering * Taiwan dollar slips for fifth consecutive session * Received support from exporter deals and fund inflows * Dealers say volumes could be low ahead of earnings season (Updates closing values) TAIPEI, April 20 (Reuters) - The Taiwan dollar closed weaker for a fifth straight session on Monday as investors tried to cover their short U.S. dollar positions, but the local dollar was supported by exporter deals and some foreign fund inflows. The Taiwan dollar fell in and out of positive territory for most of the session, trading between T$33.754 and T$33.955, before ending at T$33.830, weaker than Friday's close of T$33.816. Volume on the main Taipei Forex Inc exchange was thin at $798 million. This was higher than $679 million on Friday, but off the billion dollar mark seen on most trading days. "The Taiwan dollar was quite volatile today, as some investors were trying to cover their short positions on the U.S. dollar," said a dealer in Taipei. "However, there are still some foreign fund inflows and exporters started buying at around T$33.900, so that all provided some support." Exporters generally prefer a weaker Taiwan dollar as it allows them to get more of the local currency for every U.S. dollar they hold. Dealers cautioned that trade could continue to be volatile amid low trading volumes for most of the week, ahead of earnings results in the United States this week. "There are probably some investors who're staying on the sidelines right now," said another dealer. "Things aren't too clear until companies release their results, and when volumes are low, things can change more easily." On the smaller Cosmos exchange , the Taiwan dollar closed at T$33.825, weaker than Friday's close of T$33.805. (Reporting by Kelvin Soh and Jeanny Kao; Editing by Chris Lewis ((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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