The Taiwan dollar weakened 9.5 cents to close at NT$31.728 against the U.S. dollar on Wednesday, September 2, as trading volume reached $2.858 billion, or approximately NT$91 billion, marking the third consecutive session above $2 billion. Foreign investors reversed course from the previous session, selling NT$91.35 billion of Taiwanese stocks as the Taiwan Weighted Index fell 1.67%. The renewed US-Iran conflict intensified market pressure after new U.S. strikes against Iran pushed up oil prices, supported safe-haven demand for the dollar and lifted global bond yields. Market participants expect the Taiwan dollar to trade between NT$31.5 and NT$31.9 in the near term, with foreign positioning and hot-money flows key drivers. Maybank retained a medium-term preference for selling dollar rallies, while warning that near-term dollar upside risks have increased before the September Federal Open Market Committee (FOMC), the Federal Reserve's policy-setting body, meeting. The Taiwan dollar gained 62.6 cents, or about 1.94%, in August after falling in June and July, but bankers said its appreciation may remain limited until the Fed's policy direction becomes clearer.