The exchange rate for CAD to TWD currently stands at 21.91, which is close to its three-month average. The currency has seen relative stability within a narrow range of 3.6% from 21.53 to 22.31 in recent months. This stability comes amid movements in global commodity prices, particularly concerning oil, a key driver for the Canadian dollar. Current oil prices are around 65.07, reflecting a slight dip of 1.7% below their three-month average and experiencing a volatile trading range of 15.0% from 60.96 to 70.13.
Recent forecasts and analyses indicate that the Canadian dollar (CAD), widely known as the "loonie," has been facing downward pressure due to falling oil prices and economic concerns. Analysts reported that expectations of a contraction in Canada’s GDP in September may further contribute to the loonie's depreciation. Additionally, the Bank of Canada's recent cut in its key interest rate to 2.5%, the lowest in three years, has created conditions that may result in lower investment flows into the CAD, ultimately weakening its value.
On the other hand, developments in Taiwan present a contrasting picture for the New Taiwan Dollar (TWD). The Central Bank of Taiwan has raised its economic growth forecast for 2025 to 4.55%, supported by a robust export sector, especially in AI-related semiconductors. Although the benchmark interest rate remains unchanged at 2%, this positive outlook could foster strength in the TWD. Moreover, forecasts from Bank of America suggest that the TWD may continue to appreciate against the USD, influenced by solid export performance and appetite for currency hedging among corporations.
Overall, the relative economic outlook for Canada and Taiwan, driven by commodity prices, interest rates, and global trade dynamics, will play pivotal roles in shaping the CAD to TWD exchange rate moving forward. Traders and businesses should closely monitor these developments as they could lead to fluctuations in the exchange rate, impacting international transactions significantly.
