twn dlr 33.180/ 1552 / +16.4

16:41 06May09 RTRS-Taiwan dlr dips on c.bank, US dlr safe-haven appeal * U.S. dollar steadies ahead of bank stress tests * Taiwan central bank seen pushing local currency weaker * Taiwan dollar supported by foreign fund inflows (Updates to close) TAIPEI, May 6 (Reuters) - The Taiwan dollar slipped on Wednesday as the U.S. dollar gained globally on its safe-haven appeal and the central bank pushed the local currency lower after a recent rally, but foreign fund inflows offset the fall. The Taiwan dollar , which has been strengthening for the past week, closed at T$33.180 to the U.S. dollar, weakening from the previous close of T$33.133, the strongest finish since Jan. 8. Volume on the main Taipei Forex Inc exchange was a moderate $1.552 billion, down from $1.669 billion a day earlier. "The U.S. dollar picked up and Taiwan's central bank came in to make adjustments," a dealer in Taipei said. "But investors bought a lot of Taiwan dollars during the day." Pressuring the local currency, the U.S. dollar steadied on Wednesday after rebounding from one-month lows against the euro before the release of stress test results concerning 19 of the largest U.S. banks. Taiwan's central bank, which has bought U.S. dollars in the past few sessions to curb the local currency's strong gains, was seen continuing its buying spree on Wednesday. The central bank keeps the Taiwan dollar in a managed float and recently has pushed it weaker to help recession-hit Taiwan exporters that need the currency for cash needs at home. But foreign funds briskly bought the currency, curbing the fall, dealers said. Foreign fund purchases of the Taiwan dollar over the past week have been fuelled by hopes that the global economy was bottoming out and that Taiwan's warming ties with China could see more investments flowing to the island. The currency has gained 1.4 percent over the past week. Foreign funds bought Taiwan stocks for an eighth straight session with a net T$16.457 billion ($500 million) on Wednesday. The island's stock market <.TWII> gained 2.93 percent and raised expectations of more foreign buying. On the smaller Cosmos exchange , the Taiwan dollar weakened to T$33.171 to the U.S. dollar from the previous close of T$33.060. (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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