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17:13 29Oct09 RTRS-Taiwan dlr closes at 1-1/2-mth low on fund outflows * Taiwan dollar falls for third straight session * Lowest close since Sept. 15 as equity outflows weigh * Exporters buy currency before end month, offering support (Updates to close) TAIPEI, Oct 29 (Reuters) - The Taiwan dollar fell for a third straight session to a 1-1/2-month closing low on Thursday as a dip in the local stock market triggered foreign fund outflows while investors remained wary of central bank movements. The Taiwan dollar hit an intraday low of T$32.650 in early trade before recouping some losses to end at T$32.580, the lowest closing price since Sept. 15. "Foreign investors conducted a massive outflow, but exporters were there to offer support," said a dealer in Taiwan. On Thursday, foreign institutions had sold a whopping net T$22 billion ($675 million) in Taiwan stocks <.TWII>, which ended 2.37 percent lower. Dealers said the Taiwan central bank's remark regarding monetary policy also weighed on local markets. On Thursday, the United Daily News reported that Taiwan's central bank had urged lenders not to push down mortgage rates as interest rates could rise next year, indicating that it was concerned about escalating home prices. [ID:nTP274223] Dealers said the central bank had bought the Taiwan dollar occasionally during the session, aiming to keep the local currency at a relatively weak level to help the island's exporters, many of which were hurt by the recent recession. But the local currency found support in exporters deals. Exporters were keen to sell U.S. dollars at around T$32.55 and T$32.57, providing support to the Taiwan dollar, for cash needs before the end of the month. 0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.580 32.496 Volume in $ mln (Taipei Forex Inc) 960 693 T$ (Cosmos) 32.570 32.490 Six-month NDFs -0.670/-0.620 -0.670/-0.620 Note: Taipei Forex Inc is Taiwan's main forex exchange; Cosmos is a smaller exchange. Both exchanges end trading at 0800 GMT Source: NDFs quotations from Prebon Asia For more foreign exchange news, please click [nTOPFRX] (Reporting by Joan Hsu and Rachel Lee; Editing by Jacqueline Wong) ((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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