dlr

16:59 13Aug09 RTRS-Taiwan dollar off 2-wk closing low on fund inflows * Snaps five-session losing streak to rise on fund inflows * Tracks gains in regional currencies * Central bank intervention curbs gains * Taiwan dlr seen trading between T$32.7 and T$33.0 next week (Updates to close) TAIPEI, Aug 13 (Reuters) - The Taiwan dollar on Thursday rose from a two-week closing low in the previous session on Thursday as the U.S. Federal Reserve's positive comments about the U.S. economy triggered fund inflows to the island. "There's certainly a rise in investors' risk appetite, what the Fed said was too good to be ignored," said a dealer in Taipei, who expected the currency to trade between T$32.7 and T$33.0 next week. The Federal Reserve said on Wednesday that the U.S. economy was showing signs of levelling out two years after the onset of the deepest financial crisis in decades, which led to some U.S. dollar outflows. [ID:nN1272730] An improving U.S. economy was conducive for Taiwan as the island, like most of Asia, exports a lot of goods to the world's largest economy. Foreign institutions bought a net T$6.563 billion ($199 million) in Taiwan stocks, which helped boost the Taiwan dollar. The positive Fed comments boosted Taiwan stocks <.TWII>, which ended 1.97 percent higher on Thursday, logging its biggest daily percentage rise in 6 weeks. [ID:nTP198761] But dealers said intervention from the central bank curbed the local currency's gains. "The central bank bought U.S. dollars throughout the session at around T$32.8," the dealer said. The central bank prefers to keep the local currency relatively weak as part of efforts to help recession-hit exporters. The local currency took cues from the offshore non-deliverable forwards (NDFs) market, which widened on Thursday, indicating the market expects the currency to strengthen more than previously anticipated in half a year. 0800 GMT PREVIOUS DAY T$ (Taipei Forex Inc) 32.898 32.950 Volume in $ mln (Taipei Forex Inc) 938 1,009 T$ (Cosmos) 32.880 32.949 Six-month NDFs -0.460/-0.410 -0.400/-0.350 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 Alice Chen and Joan Hsu; Editing by Jacqueline Wong) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: gina.chang.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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