* Investors wary of c.bank, corporate earnings in the U.S.
* NDFs narrow on U.S. dollar buying (Updates to close)
TAIPEI, Oct 12 - The Taiwan dollar fell for a second straight session on Monday as the U.S. currency rebounded on anticipation that the United States will lift interest rates sooner than widely expected.
"The Taiwan dollar tracked losses on regional peers after a rebound in the U.S. dollar," said a dealer in Taipei. "Trade was extremely thin compared with last week, as foreign investors were discouraged by recent central bank intervention."
The dealer said the island's central bank bought some U.S. dollars before the market had closed, as part of efforts to pare gains by the Taiwan dollar and help the island's many export-reliant firms.
However, the central bank was less aggressive compared with the past two weeks, when it was buying U.S. dollars actively in an effort to curb the local currency's strength, with similar moves by other central banks across Asia. [ID:nN08536643]
The U.S. dollar hit a two-week high against the yen on Monday on the view that U.S. rates will be lifted earlier than previous expectations after Federal Reserve Chairman Ben Bernanke said policy could be tightened as a recovery takes hold. [ID:nLC272740]
Dealers said the local currency's fall could be temporary, because a slew of earnings results from major U.S. companies due later this week could turn out well and boost investors' appetite for risky assets, like Asian equities and currencies.
Non-deliverable forwards narrowed in offshore markets, indicating that the market expected the Taiwan dollar to strengthen less than previously anticipated.
