Taiwan dollar firms as exporters sell U.S. dollars

* Trade thin ahead of U.S. Federal Reserve meeting

* Investors wait on sidelines for Fed news

* Importers, seeking U.S. dollars, curb gains in Taiwan

TAIPEI, Nov 4 The Taiwan dollar rose in thin trade on Wednesday after falling in the past two sessions as exporters sold U.S. dollars, but trade was thin as investors cautiously awaited results of a U.S. Federal Reserve meeting.

Exporters bought Taiwan dollars, taking advantage of Tuesday's closing price, for cash needs at home, dealers said.

"Real demand from exporters helped boost the local currency today," said a dealer in Taipei.

But investors shunned risky assets, including the Taiwan dollar, as they awaited results of the Federal Reserve's two-day policy meeting when pledges to keep interest rates low for an extended period could be altered.

In global markets, the U.S. dollar steadied below a one-month high on a basket of currencies as investors awaited a Fed statement later on Wednesday. [ID:nT173780]

Locally, foreign institutions sold a net T$3.3 billion ($101 million) worth of Taiwan stocks on Wednesday, even after they closed the session up 1.97 percent.

The local currency's gains were capped as some importers chased U.S. dollars, dealers said. A firming Taiwan dollar allows importers to use less of the local currency to convert into U.S. dollars needed for their overseas purchases.

0800 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.558 32.575 Volume in $ mln (Taipei Forex Inc) 495 907 T$ (Cosmos) 32.547 32.560 Six-month NDFs <PNDF> -0.670/0.620 -0.670/-0.630 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 For more foreign exchange news, please click [nTOPFRX]