Taiwan dollar ends year at 15-month closing high

The Taiwan dollar rose to a 15-month closing high on Thursday, posting a 2.6 percent gain for 2009, as a result of strong foreign fund inflows even though Taiwan's central bank moved to slow the local currency's rise. The currency rose by T$0.208 to end at T$32.030, the highest close since October 1, 2008. Volume rose to $1.198 billion from $675 million on Wednesday.
"Foreign investors, some local insurance companies and exporters bought Taiwan dollars," said a dealer in Taipei. Foreign investors have been buyers of local shares in the past two weeks, helping send Taiwan's main TAIEX to its highest close in nearly 19 months.
Taiwan's central bank and importers were buying US dollars during Thursday's session, dealers said. Taiwan's central bank periodically intervenes to keep the currency in a managed float. It recently nudged it weaker to help recession-hit exporters, dealers said.