Taipei’s stock and currency markets weakened together on Monday, with the Taiwan dollar closing at NT$31.688 against the U.S. dollar, down 5 cents, while the Weighted Index fell 322.33 points, or 0.70%, to 45,862.52. Foreign investor positioning and weak equity sentiment added depreciation pressure to the currency. The Taiwan dollar traded between NT$31.650 and NT$31.779 on $1.697 billion in turnover. Global currency markets were cautious before this week’s Federal Reserve and Bank of Japan meetings, with traders broadly expecting each central bank to raise its policy rate by 0.25 percentage point. The U.S. Dollar Index moved above 99, while the yen consolidated near seven-month highs. Stronger-than-expected U.S. inflation data, including August CPI growth of 0.4% month over month and 3.4% year over year, lifted expectations for a quarter-point Federal Reserve increase to about 85%. Near-term direction for the Taiwan dollar will depend on central-bank signals, foreign equity flows and the effect of higher international oil prices on dollar demand and Asian import costs. The currency is expected to consolidate between NT$31.6 and NT$32 this week as traders await policy decisions.