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17:17 06Oct09 RTRS-Taiwan dollar firms, but c.bank intervenes * Foreign fund inflows, exporters push Taiwan dollar higher * C.bank buys US$, calls dealers to curb Taiwan dollar gains * Australia rate decision boosts Asian currencies (Updates to close) TAIPEI, Oct 6 (Reuters) - The Taiwan dollar rose for a second straight day on Tuesday as a result of foreign fund inflows and exporter deals, but the central bank curbed the local currency's gains by buying U.S. dollars. "A rise in the local stock market attracted foreign funds," said a dealer in Taipei. "Investor appetites for risky assets increased amid a growing sense that the global economic crisis could really come to an end after the Australian government raised interest rates." Dealers said exporter deals also helped the local currency's rise during the session. Australia's central bank raised its key cash rate by 25 basis points to 3.25 percent rate on Tuesday, saying it was safe to row back on stimulus measures now that the worst danger for the economy had passed. [ID:nSYD520296] On Tuesday, foreign institutions bought a net of T$9.6 billion ($298 million) in Taiwan stocks <.TWII>. The index closed up 1.32 percent. The central bank bought the U.S. dollar during the session to curb the local currency's gains. "The central bank bought U.S. dollars half an hour before the market closed to prevent the Taiwan dollar from rising to much and too quickly," said a second dealer in Taipei. In early trade, a few dealers said they either received or heard that the central bank was making calls to enquire about banks with bigger U.S. dollar selling deals, though less aggressively than last week. Last week, the central bank aggressively bought U.S. dollars and called or visited banks to check on their deals. On Thursday and Friday, it bought so many U.S. dollars that the Taiwan dollar ended weaker. The central bank has been trying to steer the Taiwan dollar to trend stronger gradually as it wants to protect exporters, the mainstay of the island's economy. 0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.180 32.255 Volume in $ mln (Taipei Forex Inc) 1,386 1,001 T$ (Cosmos) 32.167 32.253 Six-month NDFs -0.810/-0.760 -0.830/-0.770 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 Roger Tung and Joan Hsu; Editing by Chris Lewis) ((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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