Taiwan dollar rises on banks, inflows and exporters

* Interbank deals, fund inflows and exporters offer support

* Central bank intervention pressures Taiwan dollar

* Market awaits Fed and Taiwan policy meeting

* NDF widens on expectation of a stronger Taiwan dollar (Updates to close)

TAIPEI, Sept 22 - The Taiwan dollar crept higher on Tuesday, as banks, foreign investors and exporters offered U.S. dollars, but the central bank exerted pressure on the local currency.

"Interbank and foreign investor deals were the main driver behind the local currency's gain, and there were some exporters' deals in the afternoon," said a dealer in Taipei.

"But the central bank swiftly picked up U.S. dollars to curb the local currency's strength."

In global markets, the U.S. dollar fell on Tuesday against key currencies, such as the euro, as investors took profits in the greenback ahead of the Fed Reserve policy-setting meeting.

The Fed is widely expected to keep rates at a record low and signal that its ultra-loose monetary policy will remain in pace well into next year.

Taiwan's central bank will also hold its own rate-setting meeting on Thursday and is expected to keep its benchmark discount rate at a record low of 1.25 percent.

The local currency in the spot market also took cues from the offshore non-deliverable forwards (NDFs) market, which widened on Tuesday, as investors anticipated the Taiwan dollar will strengthen more than previously expected.

0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.386 32.419 Volume in $ mln (Taipei Forex Inc) 1,096 700 T$ (Cosmos) 32.363 32.405 Six-month NDFs -0.630/0.580 -0.540/-0.490

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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