dlr

16:55 03Nov09 RTRS-Taiwan dlr falls for a 2nd session on outflows * Foreign funds, central bank push Taiwan dollar lower * Exporters support local currency (Updates to close) TAIPEI, Nov 3 (Reuters) - The Taiwan dollar erased early gains to end lower on Tuesday as declining local stocks triggered foreign fund outflows, but deals by exporters helped limit the local currency's losses. "There were consistent fund outflows in Taiwan stocks over the past few days, which pressured the local currency," said a dealer in Taipei. On Tuesday, foreign institutions sold a net T$10 billion ($307 million) of Taiwan stocks <.TWII>, which ended 0.17 percent lower. Foreign investors remained net sellers of Taiwan stocks in the past five days. [ID:nTP182785] The Taiwan dollar rose in the early session as stronger-than-expected manufacturing and pending home sales data in the United States revived investor risk appetite. Those gains were erased in the afternoon as the Taiwan dollar followed regional losses, dealers said. "The local currency tracked losses in the Australian dollar and other emerging Asian currencies in the afternoon," said the same dealer. In global markets, the Australian dollar slipped on Tuesday after the Reserve Bank of Australia raised interest rates by an expected 25 basis points, but was less hawkish than some had anticipated. [ID:nSYD114014] Taiwan's central bank was spotted buying U.S. dollars in the afternoon session to taper gains, as the authority prefers a weaker local currency to help exporters compete with regional peers, such as South Korea. Exporters, however, limited the local currency's fall. Dealers said exporters took advantage of the weakening Taiwan dollar to enter the markets to exchange into more of the local currency with their U.S.-dollar earnings. The local currency may trade in a boxed range between T$32.5 and T$32.6 as a series of meetings of major central banks could keep investors on the sideline, the dealer said. 0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.575 32.553 Volume in $ mln (Taipei Forex Inc) 907 666 T$ (Cosmos) 32.560 32.550 Six-month NDFs -0.670/-0.630 -0.650/-0.600 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; Editing by Chris Lewis) ((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/
For Related News, Double Click on one of these codes:[M] [T] [E] [Z] [MF] [D] [PSC] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP] For Relevant Price Information, Double Click on one of these codes: Tuesday, 03 November 2009 16:55:41RTRS [nTP289555] {EN}ENDS