Tuesday, December 15, 2009
* Dubai debt relief bolsters high-yield currencies
* T$ seen trading in tight range through year's end
TAIPEI, Dec 15 - The Taiwan dollar <TWD=TP> strengthened in thin trade on Tuesday as high-yield currencies got a boost from signs of relief in the wake of Dubai's debt troubles.
High-yielding currencies retained broad gains against the U.S. dollar after Dubai got a $10 billion lifeline from Abu Dhabi, easing concerns about potential debt defaults that had driven investors to the safety of the U.S. dollar in recent sessions. [ID:nSGE5BD0TJ]
But the Taiwan dollar was expected to trade nearly flat on Tuesday unless the price managed to top T$32.3 to the U.S. dollar, in which case local exporters might seek to exchange their foreign currency for cash needs at home, a dealer in Taipei said.
Traders are also watching the island's central bank, which keeps the currency in a managed float and recently has sought to push it weaker to help recession-strapped exporters, for any intervention later in the session, another dealer said.
'Trade is flat and narrow today, with any change depending on the central bank's attitude,' the dealer said.
Forex trade is expected to trade in a tight range through year's end as investors square positions. The Taiwan dollar should range from $32.2 to T$32.3 this week, dealers said.
0200 GMT PREVIOUS DAY T$ Volume in $ mln 69 100 T$ Six-month NDFs <PNDF> -0.740/-0.690 -0.750/-0.700
Note: Taipei Forex Inc is Taiwan's main forex exchange; Cosmos is a smaller exchange
Source: NDFs quotations from Prebon Asia
For more foreign exchange news, please click [nTOPFRX] (Reporting by Ralph Jennings and Alice Chen; Editing by Ken Wills)
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