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17:01 11Nov09 RTRS-Taiwan dollar edges higher on exporters, fund inflows * T$ crawls to fresh 3-week high on inflows, exporters * T$ tracks upward-bound peers on positive data from China * Market reacts mildly to Taiwan's capital controls (Updates to close) TAIPEI, Nov 11 (Reuters) - The Taiwan dollar edged higher in skittish trade on Wednesday, supported by gains in local stocks and exporter sales of U.S. dollars, a day after the central bank took steps to ban currency speculation. The Taiwan dollar closed at T$32.310, its highest finish since Oct 20. "The Taiwan dollar was boosted by inflows to local stocks," said a dealer in Taipei. "It also tracked gains in some other Asian currencies on positive Chinese economic data." Inflows ame in part from foreign institutions, which bought a net T$11 billion ($340 million) in Taiwan stocks <.TWII>, helping push them up almost 1 percent. Exporter sales of U.S. dollars pushed the Taiwan dollar higher. Exporters seek the local currency for cash needs at home. Also supporting the local currency were favourable data from China, which buoyed the appeal of risky assets such as emerging Asian currencies. On Tuesday Taiwan banned foreign funds from investing in time deposits, a move that appeared to be aimed at deterring bets on currency appreciation. [ID:nTP305449] Market reaction to the ban was mild, as it was difficult to estimate the size of existing deposits and when they would mature. [ID:nSP13884] Taiwan's central bank, which keeps the currency in a managed float and steps in to control sudden fluctuations, bought U.S. dollars on Wednesday to head off any big gains, dealers said. 0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.310 32.349 Volume in $ mln (Taipei Forex Inc) 808 889 (Cosmos) 32.295 32.342 Six-month NDFs -0.740/-0.690 -0.740/-0.700 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 Roger Tung; Editing by Jonathan Hopfner) ((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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