dlr

16:47 08Jun09 RTRS-Taiwan dlr at 2-½ week low on stocks, US data * Reaches lowest closing price since May 19 * Stocks down more than 3 pct; foreign funds sell shares * U.S. dlr stronger globally after jobless data release (Updates to close) TAIPEI, June 8 (Reuters) - The Taiwan dollar fell on Monday to a 2-½ week closing low after sharp falls on the local stock market and because of the greenback's global gains on better-than-expected U.S. jobless data, dealers said. The Taiwan dollar closed at T$32.875 to the U.S. dollar, its weakest final price since T$32.882 on May 19 and compared with Saturday's close of T$32.720. Taiwan's forex market was open on Saturday to compensate for an extra day off a week earlier for the Dragon Boat Festival. Volume on the main Taipei Forex Inc exchange was a moderate $1.186 billion, higher than Saturday's $328 million. "We've seen outflows from the stock market as well as the U.S. dollar's strength globally," a dealer in Taipei said. "Offshore NDFs rates went down accordingly." Taiwan stocks <.TWII> fell 3.34 percent on Monday, their biggest daily percentage drop in nearly two months, as cautious investors sold technology shares before they report May sales figures later this week. [ID:nTP221456] Foreign funds were net sellers of Taiwan stocks on Monday for the fourth straight session, offloading T$6.912 billion ($210 million) on Monday. Further pressuring the Taiwan dollar, the U.S. dollar rose against a basket of currencies on Monday, extending sharp gains made late last week as U.S. Treasury yields rose to seven-month highs, prompting investors to cover short-dollar positions. Smaller-than-expected job losses in the United States in May sparked concerns on Friday that the Federal Reserve may lift interest rates sooner than previously thought, helping push up Treasury yields, dealers said. [ID:nT44401] In the non-deliverable forwards market, Taiwan dollar six-month NDFs were quoted at -0.590/-0.540, compared with Saturday's -0.720/-0.690. That indicated the market was expecting it to strengthen by a smaller degree in half a year. Exporters, which prefer a weak local currency to buy more of it for cash needs at home, kept the Taiwan dollar's fall in check by entering the market on Monday, dealers said. On the smaller Cosmos exchange, the Taiwan dollar traded at T$32.871, weaker than Saturday's close of T$32.719. (Reporting by Ralph Jennings and Lin Miao-jung) ((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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