The Taiwan dollar weakened on Thursday as local stocks fell on weak US retail data, but exporter purchases for the local currency helped temper the fall. The Taiwan dollar closed at T$32.955 to the US dollar, its weakest finish since May 8 and softening from its Wednesday close of T$32.890. On Wednesday, the currency had reached a 2009 intraday high of T$32.767.
Volume on the main Taipei Forex Inc exchange was moderate at $766 million, compared with $1.12 billion a day earlier. Taiwan stocks ended down 1.87 percent on Thursday as gloomy US retail sales results reignited fears that the economic slowdown may not be over.
The central bank also sold Taiwan dollars actively early in the session, dealers said, as the bank preferred the currency weak to help the island's sluggish exports. The Taiwan dollar has risen about 6 percent so far since its trough in early March, due to optimism about new trade and investment deals signed in April between the island and economic powerhouse China.
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