dlr / 32.853 / 1054/ -2.9

16:58 09Jun09 RTRS-Taiwan dollar off 2-½ week low on exporter deals * Taiwan dollar reverses four straight sessions of falls * Dealers expect Taiwan dollar to remain rangebound (Updates with closing values) TAIPEI, June 9 (Reuters) - The Taiwan dollar reversed four straight sessions of falls to close stronger on Tuesday as exporters took advantage of the currency's recent depreciation, but foreign fund outflows capped gains. The Taiwan dollar sank to an intraday low of T$32.951 to the U.S. dollar but pared some of those gains to close at T$32.853, stronger than Monday's close of T$32.875, which was the weakest final price since May 19. Volume on the main Taipei Forex Inc exchange was moderate at $1.05 billion, but lower than Monday's $1.186 billion. "Exporter deals were really helping the Taiwan dollar today," said a dealer in Taipei. "It's been falling for a few days now, and many of them are just taking the opportunity to get rid of their U.S. dollars now." Exporters generally prefer a weaker Taiwan dollar as it allows them to get more of the local currency, for cash needs at home, with their foreign exchange holdings. Foreign institutions, which have been net sellers of Taiwan stocks for five straight sessions, unloaded another T$2.85 billion ($86.9 million) on Tuesday, limiting the currency's gain. "The outflow started to slow somewhat in afternoon trade, so that's when we saw the Taiwan dollar begin appreciating a bit more," said another dealer. Dealers said they expect the Taiwan dollar to stay rangebound in the coming week, as weak Taiwan export figures continue to weigh on the currency. [ID:nSP402268] On the smaller Cosmos exchange, the Taiwan dollar rose to T$32.820 compared to Monday's close of T$32.871. (Reporting by Kelvin Soh and Argin Chang, Editing by Jacqueline Wong) ((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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