Taiwan dlr eases to 1-1/2-mth low on US woes, outflows

* Investors sell Taiwan stocks in thin trade

* A rebound in the global U.S. dollar pushes down T$

* Exporters limit the local currency's losses

TAIPEI, Oct 28 - The Taiwan dollar fell to a new 1-1/2-month low on Wednesday as the U.S. dollar gained on consumer confidence woes and foreign investors pulled money from Taiwan stocks, but exporter deals supported the local currency.

The Taiwan dollar hit a low of T$32.590 and swung back to T$32.460 before settling into a groove slightly weaker than the previous day's close of T$32.480.

The intraday low was the weakest level since Sept. 16.

Overseas, the U.S. dollar rose to a two-week high against the euro on Tuesday after a report showing U.S. consumer confidence deteriorated sharply in October boosted the greenback's safe-haven appeal. In Taiwan, foreign investors were expected to sell Taiwan stocks on Wednesday, impacting the Taiwan dollar, dealers said. Stocks were down 0.13 percent in early trade.

On Tuesday, foreign institutions sold a net T$4.7 billion ($145 million) of Taiwan stocks.

"It's mainly global factors, not local ones," said Craig Chan, a strategist with Nomura Securities in Singapore. "I think the U.S. dollar is a big factor and equities as well. We saw outflows yesterday so we will probably see more today.

But brisk sales of U.S. dollars by Taiwan exporters provided support to the local currency on Wednesday.

Exporters typically prefer a weakening Taiwan dollar that enables them to convert their U.S. dollar earnings into more of the local currency for cash needs at home in the final days of each month.

Taiwan's central bank, which prefers a relatively weak Taiwan dollar to help Taiwan's exporters, also helped push the local currency lower with a hefty U.S. dollar purchase during the session, a dealer in Taipei said.

0215 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.495 32.480 (close) Volume in $ mln (Taipei Forex Inc) 204 224 T$ (Cosmos) 32.490 32.479 (close) Six-month NDFs -0.650/-0.600 -0.630/-0.580 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

For more foreign exchange news, please click