twn dlr 33.132/ 1331/ +7.19

17:20 07May09 RTRS-Taiwan dlr firms on inflows, but some traders wait * Investor interest continues following Taiwan-China deals * Market awaits U.S. bank stress test, ECB announcements (Updates to close) TAIPEI, May 7 (Reuters) - The Taiwan dollar firmed on Thursday on sustained foreign fund inflows, but some traders cooled the heated buying of earlier this week to await U.S. bank stress test results and a possible rate cut in Europe. The Taiwan dollar firmed to T$33.132 to the U.S. dollar compared with the previous close of T$33.180. Volume on the main Taipei Forex Inc exchange was a moderate $1.331 billion, lower than $1.552 billion a day earlier. Foreign funds have been buying actively into Taiwan's stock market <.TWII> over the past week, purchasing a net T$7.196 billion ($220 million) on Thursday. Investors have zoomed in on Taiwan over the past week because of announcements of financial deals and corporate tie-ups with China. "There was some equity inflow today, with traders looking for Taiwan stocks to break 10,000," a currency dealer in Taipei said. "But no one wants to take a big position ahead of overseas news." At 2100 GMT the U.S. government is due to release the results of stress tests intended to show the banks' ability to weather a deep recessing. [ID:nL6943131] Dealers said they were also monitoring Taiwan's trade data. The government said Taiwan's exports had fallen 34 percent, worse than forecasts. [ID:nTP271230] Some traders were also watching the European Central Bank's policy meeting on Thursday. The authority is expected to cut interest rates and may announce measures to stimulate lending and growth. But foreign fund flows into Taiwan's markets are forecast to continue, dealers say. On the smaller Cosmos exchange , the Taiwan dollar firmed to T$33.100 to the U.S. dollar from the previous close of T$33.171. (Reporting by Ralph Jennings; Editing by Chris Lewis) ((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 news.feedback.asia@thomsonreuters.com)) Keywords: MARKETS TAIWAN CURRENCY/
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