dlr / 32.626 / 797

17:12 25May09 RTRS-Taiwan dlr up on exporters, loss of U.S. dlr appeal * Global investors sell U.S. dollars as rating under fire * Trickle of exporter deals seen * Taiwan dollar has room to grow on China optimism TAIPEI, May 25 (Reuters) - The Taiwan dollar gained on Monday amid a trickle of exporter purchases in otherwise thin trade as the U.S. dollar remained globally weak with its rating under fire. The Taiwan dollar closed at T$32.626 to the U.S. dollar, its strongest close since Dec. 19 last year, and compared with Friday's close of T$32.679. Volume on the main Taipei Forex Inc exchange was a light $797 million, down from $1.35 billion on Friday. "There wasn't much driving the market today, not much direction," a dealer in Taipei said. "The reason it went up a bit is due to the U.S. dollar's performance." The U.S. dollar held near a five-month low against a basket of currencies <.DXY> as concern that the United States may lose its AAA-rating status prompted investors to sell the world's reserve currency. A few exporters, which need local currency for cash needs at home near the end of the month, also sold U.S. dollars on Monday, boosting the Taiwan dollar's rate, another dealer said. More exporter deals are seen in the final days of May. Foreign funds are also expected to keep buying Taiwan dollars in the near term as trade blooms between the island and its political rival, economic powerhouse China, dealers say. "There seems to be a positive sentiment about China, a lot of expectations for inflows," said Mitul Kotecha, head of global currency strategy with Calyon in Hong Kong. Foreign institutions have been net buyers of Taiwan stocks in May, purchasing T$45.9 billion ($1.41 billion) so far this month. The Taiwan dollar slid fast earlier in the year due to the global economic downturn but has climbed back in recent weeks on optimism about new trade and investment deals signed in April between the island and China. On the smaller Cosmos exchange , the Taiwan dollar firmed to T$32.610 to the U.S. dollar from Friday's close of T$32.665. (Reporting by Ralph Jennings and Roger Tung, Editing by Jacqueline Wong) ((ralph.jennings@thomsonreuters.com; +886 2 2500 4882; Reuters Messaging: ralph.jennings.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com)) Keywords: MARKETS TAIWAN CURRENCY/
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