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The Taiwan dollar weakened on Tuesday as the stock market fell, although the local currency was supported by prospects for closer cross-Strait trade ties as China's top Taiwan negotiator visited the island. The Taiwan dollar had fallen to T$32.929 to the US dollar, down from Monday's close of T$32.898.
Investors were cautious, with volume on the main Taipei Forex Inc exchange at a thin $74 million after 45 minutes of trade, lower than $146 million during the same period a day earlier. "The Taiwan dollar was pressured as local stocks fell and the South Korean won weakened," said a dealer at a local bank.

Copyright Reuters, 2008

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