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17:07 13Jul09 RTRS-Taiwan dollar at 2-½ month low on funds outflow * Brisk foreign fund outflows after stocks fall * Exporters provide support * Taiwan dollar seen at T$33.0-T$33.2 in coming days * NDFs narrow on offshore U.S. dollar buying (Adds details, quotes) TAIPEI, July 13 (Reuters) - The Taiwan dollar fell to a 2-½ month closing low on Monday on fund outflows from the equity market, which fell following news of a possible delay in the signing of a long-awaited financial deal with China. U.S. dollar selling by exporters helped cut some losses, but the Taiwan currency ended at T$33.193, its weakest close since April 30. The Taiwan dollar fell to as low as T$33.201 during trade. "Stocks fell so much today and foreign funds were getting out of the Taiwan market, which pushed the Taiwan dollar lower," said a dealer in Taipei. "But exporters sold some U.S. dollars during the session since the Taiwan dollar weakened beyond T$33, though there were some who were waiting on the sidelines to wait for the Taiwan dollar to weaken even further." Exporters usually prefer a weaker Taiwan dollar because they can increase their foreign currency earnings. The dominant factor behind the Taiwan dollar's fall was the main TAIEX index <.TWII> which fell 3.53 percent, logging its biggest daily percentage drop in three months. On Monday, foreign funds became net sellers for a second straight session by unloading another net T$6.8 billion ($206 million) in Taiwan stocks. Dealers expect the Taiwan dollar to trend lower in coming days as investors might shy away from risky assets ahead of the U.S. corporate earnings season, with the currency seen trading mainly between T$33.0 and T$33.2. 0800 GMT PREVIOUS DAY T$ (Taipei Forex Inc) 33.193 33.050 Volume in $ mln (Taipei Forex Inc) 1,243 782 T$ (Cosmos) 33.190 33.040 Six-month NDFs -0.290/-0.240 -0.380/-0.330 Note: Taipei Forex Inc is Taiwan's main forex exchange; Cosmos is a smaller exchange Source: NDFs quotations from Prebon Asia For more foreign exchange news, please click [nTOPFRX] (Reporting by Lee Chyen Yee and Argin Chang; Editing by Kazunori Takada) ((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.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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