Taiwan dlr gains on fund inflows, exporters deals

* Gains in local stocks help boost Taiwan dollar

* Taiwan c.bank buys U.S. dlrs to curb T$'s strength -dealer

* T$ seen trading mainly between T$32.2 and T$32.5 this week (Updates to close)

TAIPEI, Oct 20 - The Taiwan dollar edged higher in slow trade on Tuesday on fund inflows and exporters deals, but dealers said the central bank bought the greenback to curb the local currency's strength.

"There was some real demand from exporters, but trading was really slow as many people stayed sidelined," said a dealer in Taipei, who expected the Taiwan dollar to trade between T$32.2 and T$32.5 for the rest of the week.

Volume was light compared with the last few sessions as investors were wary of possible intervention from the island's central bank. The authorities have been keen to keep the Taiwan dollar from rising above T$32.200 in the short term, the dealer said.

The offshore non-deliverable forwards (NDFs) market narrowed despite the market generally expecting that a stronger global economy would boost demand for risky assets, such as emerging Asian currencies.

On Tuesday, foreign investors bought a net T$5.2 billion ($161 million) worth of Taiwan stocks, which ended up 0.03 percent.

In global markets, the greenback fell to a nearly 14-month low on Tuesday as a cocktail of comments by policy makers fed into dollar-bearish sentiment.

0800 GMT MONDAY SESSION T$ (Taipei Forex Inc) 32.275 32.325 Volume in $ mln (Taipei Forex Inc) 532 818 T$ (Cosmos) 32.270 32.323 Six-month NDFs -0.750/-0.700 -0.825/-0.775 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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