Taiwan dollar up on foreign fund inflows, exporters

* Foreign funds, exporters lift Taiwan dollar

* Market watching stock movements closely

* Trade thin as several Asian markets shut

TAIPEI, Sept 21 - The Taiwan dollar firmed slightly on Monday on U.S. dollar selling by some foreign funds and exporters, though trade was thin as some Asian markets were on holiday.

"Some exporters were already in the market this morning selling U.S. dollars," said a dealer in Taipei.

"The Taiwan dollar also had a boost from the stock market, which rose in early trade, but it's falling now so that's something we'll be having to watch for the rest of the session."

Another dealer said there were some foreign fund inflows as the market favoured risky assets with the global economy gradually showing signs of improvement.

Taiwan's stocks opened higher, but gave up gains to trade 0.6 percent lower by mid-morning.

Dealers said volumes were low as some countries in the region, such as Japan and Singapore, are on holiday.

0200 GMT FRIDAY SESSION T$ (Taipei Forex Inc) 32.424 32.458 (close) Volume in $ mln (Taipei Forex Inc) 137 161 T$ (Cosmos) 32.406 32.440 (close) Six-month NDFs -0.560/-0.510 -0.560/-0.510

Note: Taipei Forex Inc is Taiwan's main forex exchange; Cosmos is a smaller exchange

Source: NDFs quotations from Prebon Asia

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