Taiwan dollar rises on stock gains, exporters

* Rising local stocks boost sentiment in forex market

* Exporters sell U.S. dollars at around T$33

* C.bank buys and sells U.S. dollars to keep trade narrow (Adds details, quotes)

TAIPEI, July 9 - The Taiwan dollar <TWD=TP> ended a three-day losing streak to close higher on Thursday on demand from interbank dealers after the local stock market rose and on exporter deals.

The Taiwan dollar had hit a two-month closing low on Wednesday.

"The improved sentiment from stocks spilt over into the forex market prompting interbank dealers to buy Taiwan dollars," said a dealer in Taipei. "Exporters were also unloading U.S. dollars when the Taiwan dollar traded weaker than T$33."

Taiwan's main TAIEX share index <.TWII> gained 1.2 percent to a one-month closing high, led by LCD makers.

The central bank was buying and selling U.S. dollars throughout the session to keep trade in the Taiwan dollar narrow. Gains in the Taiwan dollar lagged some other Asian currencies, such as the Indonesia rupiah <IDR=>, which rose due to domestic politics. [ID:nSP372034]

0800 GMT PREVIOUS DAY T$ (Taipei Forex Inc) 32.970 33.036 (close) Volume in $ mln (Taipei Forex Inc) 659 1,138 T$ (Cosmos) 32.955 33.017 (close) Six-month NDFs <PNDF> -0.420/-0.380 -0.350/-0.340

Note: Taipei Forex Inc is Taiwan's main forex exchange; Cosmos is a smaller exchange

Source: NDFs quotations from Prebon Asia

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