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17:15 12Jun09 RTRS-Taiwan dlr ends flat as c.bank and exporters meet * Taiwan dollar gives up early gains as stocks fall * Taiwan central bank buys U.S. dollars * Exporters' purchases helped curb decline TAIPEI, June 12 (Reuters) - The Taiwan dollar ended flat on Friday, paring early gains as local stocks slid and the central bank intervened by selling the local currency, but exporter deals helped limit losses. The Taiwan dollar closed at T$32.800 against the U.S. dollar, after trading mostly higher throughout the session. It is also weaker than the close of T$32.798 on Thursday. Volume on the main TAIEX share index <.TWII> was a paltry $573 million, less than the $765 million recorded a day earlier. "The Taiwan dollar rose in early trade as local stocks were quite stable and as the U.S. dollar weakened," said a dealer at a local bank. "But it weakened after local stocks dropped sharply in late trading. A rebound in the U.S. dollar in the afternoon also pressured the Taiwan dollar." Taiwan stocks <.TWII> closed 1.8 percent lower on Friday to post their worst weekly performance in nearly seven months, with foreign investors selling a net T$5.5 billion ($168 million) worth of local shares. [ID:nTP170358] The U.S. dollar rose against a basket of major currencies on Friday, as investors booked profits in higher-yielding currencies like the Australian dollar ahead of the weekend. [ID:nT336542] Central bank intervention further weighed on the Taiwan dollar, and offset currency buying by exporters. "The movement in the U.S. dollar has been volatile," said another dealer in Taipei. "So the central bank stepped in to push the Taiwan dollar lower as it feared the U.S. dollar might weaken further and push up the Taiwan dollar steeply next week." The central bank, which keeps the Taiwan dollar in a managed float, prefers it to stay weak to help support the island's sluggish exports. On the smaller Cosmos exchange, the Taiwan dollar ended at T$32.785 compared to Thursday's close of T$32.790. (Reporting by Roger Tung and Gina Chang; Editing by Chris Lewis) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:gina.chang.thomsonreuters.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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