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17:23 10Sep09 RTRS-Taiwan dlr ends over 3-mth high after cabinet named * Market positive on potential China-Taiwan finance MOU * Central bank intervention and importer deals curb gains (Updates to close) TAIPEI, Sept 10 (Reuters) - The Taiwan dollar climbed sharply to more than a three-month closing high as investors bought the currency on a rally in Taiwan stocks, on prospects of a financial deal with China and a new cabinet named to ease criticism over a deadly typhoon. The Taiwan dollar closed at T$32.649, the strongest since June 5, after hitting a one-month intraday high at T$32.622 during the session. "The rally in the local currency was driven by a huge fund inflow to Taiwan stocks today, which surged on hopes of the imminent signing of a financial MOU with China," said a dealer in Taipei. On Thursday, foreign institutions bought a net T$28.9 billion ($887 million) worth of Taiwan stocks, marking their sixth-largest net purchase ever. [ID:nTP122059] The main TAIEX share index <.TWII> finished 1.12 percent higher at a 14-month high, with financial shares being the biggest contributors to the gain. But importer deals and central bank intervention weighed on the Taiwan dollar, dealers said. Importers have been keen to buy U.S. dollars at around T$32.650, pressuring the local currency, they said. Meanwhile, the central bank bought U.S. dollars throughout the session to keep the Taiwan dollar from strengthening further, said the dealer. The central bank preferred to keep the local currency relatively weak as part of efforts to help the island's exporters hurt by the global economic downturn. 0800 GMT WEDNESDAY CLOSE T$ (Taipei Forex Inc) 32.649 32.745 Volume in $ mln (Taipei Forex Inc) 1,080 1,032 T$ (Cosmos) 32.630 32.730 Six-month NDFs -0.500/-0.450 -0.510/-0.460 Note: Taipei Forex Inc is Taiwan's main forex exchange; Cosmos is a smaller exchange. Both exchanges close at 0800 GMT. Source: NDFs quotations from Prebon Asia For more foreign exchange news, please click [nTOPFRX] (Reporting by Joan Hsu and Alice Chen; 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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