Taiwan dollar rises on fund inflows, exporters

* Taiwan dollar up after falling for three straight sessions

* Fund inflows, exporters deals boost the local currency

* Risk appetite increases on upbeat U.S. earnings (Adds details, quotes)

TAIPEI, Oct 14 - The Taiwan dollar rose on Wednesday underpinned by foreign fund inflows and exporters deals, but the central bank tried to limit the local currency's gains by buying U.S. dollars.

"The Taiwan dollar rose along with Taiwan stocks today and took cues from other rising Asian currencies, including the Korean won," said a dealer in Taipei.

Investors' risk appetite grew as upbeat earnings reports from the United States fuelled hopes that the global economy was recovering.

On Wednesday, foreign institutions bought a net T$11 billion ($342 million) of Taiwan stocks, which finished up 1.31 percent.

But the central bank curbed the local currency's gains by buying U.S. dollars, said the dealer.

The Taiwan dollar softened for three straight sessions before Wednesday, partly because the central bank had been buying U.S. dollars to ensure the currency remained relatively weak for the island's exporters.

A weaker global U.S. dollar has also helped the local currency.

In global markets, the U.S. dollar hit a 14-month low versus the euro and a currency basket on Wednesday on the view that U.S. interest rates will still stay low.

0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.242 32.302 Volume in $ mln (Taipei Forex Inc) 908 822 T$ (Cosmos) 32.235 32.297 Six-month NDFs -0.800/-0.770 -0.760/-0.710

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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