Taiwan dollar eases on c.bank's hot money comments

* C.bank comments on hot money pushes Taiwan dollar down

* C.bank says to maintain order in forex market

* Investors cover short positions in US$ in NDFs

TAIPEI, Nov 19 - The Taiwan dollar eased for a second straight day on Thursday, pressured by the central bank's comments discouraging hot money flowing into the island and the U.S. dollar's global strength.

"The Taiwan dollar is feeling some pressure on foreign fund outflows after the governor's comments," said a dealer in Taipei.

Earlier in the day, Central Bank Governor Perng Fai-nan told parliament he hoped an estimated $11 billion in speculative hot money that has flooded into the island will fall in the near future.

His comments come as Asian central banks are increasingly worried about brisk fund inflows into their local asset markets, with some investors wary of capital controls in the region.

Over a week ago, Taiwan said it imposed capital controls by banning foreign funds from investing in time deposits in a move that appeared to be aimed at curbing speculative currency appreciation.

During the parliament session, Perng also said the central bank was ready to step into the market to curb any huge swings in the forex market.

Another dealer said investors in the non-deliverable forwards markets began actively covering their short U.S. dollar positions, with six-month NDFs narrowing to -0.630/-0.580, indicating the local currency will firm less than earlier market expectations.

Importers were also active during the session, taking advantage of favourable rates including a 13-month closing high on Tuesday, dealers said. Their purchases of U.S. dollars for overseas cash needs pressured the Taiwan dollar.

0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.290 32.128 (close) Volume in $ mln (Taipei Forex Inc) 906 651 (Cosmos) 32.260 32.115 (close) Six-month NDFs -0.700/-0.650 -0.740/0.690

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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