dlr / 32.889 /497 / -5.6

16:43 17Jun09 RTRS-Taiwan dollar ends flat as exporters, funds meet * Taiwan dollar slightly weaker in thin trade * Stocks and NDFs affecting sentiment, keeping investors away * Dealers expect currency to trade flat this week (Updates to close) TAIPEI, June 17 (Reuters) - The Taiwan dollar ended flat on Wednesday as exporter deals were met with some foreign fund outflows, but trade was thin as most investors stayed on the sidelines amid a fall in the stock market. The Taiwan dollar traded in a tight range between T$32.860 and T$32.935 before closing at T$32.889, slightly weaker than Tuesday's close of T$32.885. Volume on the main Taipei Forex Inc exchange was a paltry $497 million, barely half of the billion dollar mark seen on most trading days, and lower than Tuesday's already thin $779 million. "The kind of volume we saw today was really quite exceptional," said a dealer in Taipei. "Volumes were really low, and the buy and sell offers we received were evenly matched." The decline in the local equities market <.TWII> over the past few days also led many investors to stay away, as they looked for clearer direction before making any investment decisions. Foreign institutions also sold a net T$5.58 billion ($170 million) worth of stocks on Wednesday, further dampening sentiment and raising expectations of more fund outflows that would pressure the local currency. The Taiwan dollar also took some of its cue from the offshore non-deliverable forwards (NDF) market, where six-month NDFs were quoted at -0.610/-0.560 compared with -0.640/-0.580 the previous session, meaning the market expects the currency to strengthen by a smaller degree in half a year. Dealers said they expect the Taiwan dollar to trade within the T$32.800 and T$33.000 range in the coming days, barring any unforseen developments, such as surprises in the U.S. market. "Things should be quite flat for this week," said another dealer. "There're no major indicators coming out, and everyone seems to be staying away anyway." On the smaller Cosmos exchange, the Taiwan dollar closed at T$32.888, slightly weaker than Tuesday's close of T$32.882. (Reporting by Kelvin Soh and Jeanny Kao; Editing by Ken Wills) ((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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