Taiwan dlr firms after U.S. data renews risk appeal

* Taiwan dollar rebounds from 1-½ month low in thin trade

* Stocks, light U.S. dlr buying by central bank curb T$ rise (Updates to close)

TAIPEI, Oct 30 - The Taiwan dollar firmed in thin trade on Friday, after hitting a 1-½ month closing low in the previous session, on investor interest in risky assets such as emerging Asian currencies after positive U.S. GDP data.

The U.S. economy grew in the third quarter for the first time in more than a year as government stimuli helped lift consumer spending and home building, indicating that the economy is stabilising although difficulties still lie ahead. [ID:nN29388343]

News from the United States renewed investor appetite for riskier assets, including the Taiwan dollar, dealers said.

"There wasn't much trade today, but of course the U.S. dollar went lower overnight," one dealer in Taipei said.

On Thursday, the Taiwan dollar <TWD=TP> hit an intraday low of T$32.650 in early trade before recouping some losses to end at T$32.580, the lowest closing price since Sept. 15.

Exporters also supported the Taiwan dollar on Friday with a trickle of purchases, dealers said. They had been in the market from earlier in the week as the Taiwan dollar fell, allowing them to change foreign currency into more of the local currency for cash needs at home ahead of the end of the month.

But Taiwan stocks <.TWII>, which closed 0.21 percent lower, capped the currency's gains, dealers said. Foreign funds sold a net T$5.544 billion ($170 million) in local stocks on Friday.

Dealers said Taiwan's central bank also bought U.S. dollars in the foreign exchange market to curb the local currency's gains but that the purchase amounts were small.

0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.535 32.580 Volume in $ mln (Taipei Forex Inc) 616 960 T$ (Cosmos) 32.527 32.570 Six-month NDFs <PNDF> -0.690/-0.640 -0.670/-0.620 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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