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Taiwan dollar up on exporters, c.bank eyed
Reuters - Thursday, December 25
TAIPEI, Dec 25 - The Taiwan dollar continued its climb for a second day amid thin trade on Christmas day as a small number of exporter deals continued, while traders remained wary of potential central bank moves.
The Taiwan dollar <TWD=TP> rose to a high of T$32.957 to the U.S. dollar, but later pared some of those gains to trade at T$32.985 at 0146 GMT, stronger than Wednesday's close of T$33.045.
Volume on the Taipei Forex Inc exchange was thin at $62 million after 45 minutes of trade on Christmas Day, well below the $211 million recorded during the same period on Wednesday.
"Most foreign companies are taking a break for Christmas today, so volume is extremely low and we only had one or two deals in the first 15 minutes of trade," said a dealer in Taipei.
"With such low volumes, it's easy for the currency to see drastic changes, so if that happens, we'll be looking to see if the central bank intervenes."
Investors were also unwilling to build new positions as some of them had already squared off as the end of the year approached, dealers said.
"Nobody wants things to change too drastically in the next few days. It's the end of the year, and there shouldn't be any more surprises coming up," said another dealer.
On the non-deliverable forwards market, six-month NDFs were quoted at -0.270/-0.220 from Wednesday's close of -0.260/-0.200, meaning investors expect the Taiwan dollar to firm more than previously thought.
On the smaller Cosmos exchange <COSMOS1>, the Taiwan dollar rose to T$32.980 from the previous close of T$33.038.
(Reporting by Kelvin Soh and Yvette Chen, Editing by Jacqueline Wong)
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