Taiwan dlr near 2-wk low on profit-taking, c.bank remark

* Lowest closing price since Nov. 9

* Investors take profits in risky assets, boosting US$

* T$ seen strengthening in long term despite c.bank remarks

TAIPEI, Nov 20 - The Taiwan dollar fell for a third straight session on Friday to a near 2-week low as investors took profits on risky assets and kept a distance after the central bank's comment aimed at deterring hot money inflows.

A closing price of T$32.350 to the U.S. dollar was the lowest since Nov. 9.

Pressuring the local currency, the U.S. dollar kept its broad strength as investors continued to sell higher-yielding currencies and took profit from gains made in the past few months in risky assets.

The Taiwan dollar tracked local stocks, which closed 0.99 percent lower on Friday as foreign funds sold a net T$11.86 billion ($367 million) in shares. On Thursday, further denting the Taiwan dollar's appeal, Central Bank Governor Perng Fai-nan told parliament he hoped an estimated $11 billion in speculative hot money that had flooded into the island would decline in the near future.

"The comment is going to cause some people to reassess, but the Taiwan dollar's trend is to strengthen," said Patrick Bennett, currency strategist at Societe Generale in Hong Kong, citing optimism about Taiwan-China trade ties.

In the non-deliverable forwards market, six-month NDFs were quoted at -0.660/-0.610, compared with Thursday's -0.700/-0.650. That indicated the market was expecting the Taiwan dollar to strengthen by a smaller degree in half a year.

But Taiwan exporters, which need the currency for cash needs at home, took advantage of the weakening price to buy more Taiwan dollars, effectively curbing losses, dealers said.

0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.350 32.290 (close) Volume in $ mln (Taipei Forex Inc) 1,033 906 (Cosmos) 32.325 32.260 (close) Six-month NDFs -0.660/-0.610 -0.700/-0.650

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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