Taiwan dlr tracks peers up on U.S. rate concerns

* Taiwan dlr higher as greenback hovers near 14-month low

* Importer, exporter deals expected in Taiwan

* Taiwan dlr seen between T$32.20 and T$32.35 over session

TAIPEI, Oct 20 - The Taiwan dollar <TWD=TP> rose in slow trade on Tuesday, tracking Asian peers, due to global U.S. dollar weakness fuelled by expectations that the Federal Reserve would hold down interest rates.

The Taiwan dollar followed the Australian dollar <AUD=> and other Asian currencies higher as the greenback hovered near a 14-month low against a basket of currencies as investors bet the Federal Reserve would hold rates near zero into next year because of possible rising unemployment. [ID:nN19383668]

"The Taiwan dollar had previously been pretty weak, but now its Asian peers are up, so the Taiwan dollar can go up with them," a dealer in Taipei said.

Early gains in Taiwan stocks <.TWII> also supported the local currency, the direction of which later in the session is seen hinging on deals by importers or exporters.

Foreign investors were wary of possible Taiwan central bank intervention to stabilise the market, dealers said. The authority keeps the currency in a managed float and often intervenes to offset sharp fluctuations.

The Taiwan dollar should trade between T$32.200-T$32.350 later in the session, a dealer said.

0200 GMT MONDAY SESSION T$ (Taipei Forex Inc) 32.272 32.325 (close) Volume in $ mln (Taipei Forex Inc) 70 166 T$ (Cosmos) 32.265 32.323 (close) Six-month NDFs <PNDF> -0.800/0.750 -0.825/-0.775 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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