Taiwan dlr flat on stocks, U.S. strength, cash needs

(Updates to close)

TAIPEI, July 7 (Reuters) - The Taiwan dollar closed flat on Monday as a boost in local stocks and exporter purchases of the local currency squared off against a globally stronger U.S. dollar and purchases by oil traders, dealers said.

The Taiwan dollar TWD=TP closed at T$30.399 to the U.S. dollar, little changed from Friday's final price of T$30.401.

Volume on the main Taipei Forex Inc was a thin $856 million, up slightly from $824 million in the previous session, as most investors watched from the sidelines for fresh economic news.

"Taiwan stocks went up a bit, and every day we're seeing exporters," said a dealer in Taipei. "But lately the amount of trade has been very light."

Stocks .TWII closed up 1.56 percent as cement shares rose on news of a new freeway, and foreign institutions in the market bought a net T$330 million ($10 million), ending a three-day selling streak.

Foreign funds have sold a total of T$34.765 billion in Taiwan stocks so far in July.

Exporters also bought the local currency on Monday, for cash needs at home, dealers said. Foreign custodian banks also bought local currency, a dealer said.

Further pressuring the Taiwan dollar, the U.S. dollar edged up to a one-week high versus a basket of major currencies on Monday on speculation comments from G8 officials meeting in Japan could push oil prices further away from last week's record highs.