Taiwan dollar falls for a 2nd session on outflows

* Taiwan dollar down after weaker U.S. earnings, data

* Exporter deals limit losses

* Taiwan dlr seen between T$32.20 and T$32.40 this week (Updates to close)

TAIPEI, Oct 19 - The Taiwan dollar <TWD=TP> fell for a second straight session on Monday as foreign investors shunned risky assets because of weak U.S. corporate results, but exporter deals limited the local currency's losses.

"The U.S. dollar has seen a rebound, prompting some investors to cover short positions on the greenback," said a dealer in Taipei, "But exporter deals and firmer local stocks helped curb losses."

Investor risk appetite decreased as lacklustre results from companies like Bank of America Corp <BAC.N> and weaker consumer sentiment damped optimism on the strength of the global economic recovery. [.N]

The Taiwan dollar also tracked losses on the South Korean won, which hit a near three-week low against the dollar on Monday. [ID:nSE0167189]

Dealers said there was little intervention from Taiwan's central bank as the Taiwan dollar weakened, as the authorities prefer a weaker unit to help the island's exports.

The dealer said the Taiwan dollar could trade between T$32.200-T$32.400 for rest of the week.

Despite the fall, dealers said investors continued to anticipate a further rise in emerging Asian currencies, including the Taiwan dollar in the long term as the global economy recovers, helping the region's economies.

In the offshore non-deliverable forwards (NDFs) market, six-month NDFs widened on Monday, indicating that the Taiwan dollar would likely firm by a larger degree in half a year.

0800 GMT FRIDAY SESSION T$ (Taipei Forex Inc) 32.325 32.300 Volume in $ mln (Taipei Forex Inc) 818 1,177 T$ (Cosmos) 32.323 32.265 Six-month NDFs <PNDF> -0.825/0.775 -0.780/-0.730 Note: Taipei Forex Inc is Taiwan's main forex exchange; Cosmos is a smaller exchange. Both exchanges end trading at 0800 GMT

Source: NDFs quotations from Prebon Asia

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