The USD to TWD exchange rate has shown notable trends in recent weeks, influenced by a mix of U.S. economic data, Federal Reserve commentary, and developments in Taiwan's economy. Currently, the USD is trading near 30.92 TWD, which is 1.6% above its three-month average of 30.43 TWD, signaling a strengthening of the dollar.
Analysts have pointed to a range of factors driving the USD's performance. The Federal Reserve's latest decisions have provided support for the dollar, particularly as markets adjust their expectations regarding future rate cuts. However, a weaker-than-expected ISM manufacturing PMI has exerted some pressure on the dollar, highlighting challenges within the U.S. manufacturing sector. Comments from Fed policymakers, especially from dovish members like Michelle Bowman, could further impact the USD in the near term.
From the TWD perspective, Taiwan’s central bank has recently raised its economic growth forecast significantly to 4.55%, which is expected to support demand for the currency. Stability in Taiwan’s interest rates, maintained at 2%, has also contributed to a favorable outlook for the TWD. Market experts believe that the TWD may continue to appreciate against the USD, bolstered by strong export performance, particularly in semiconductors. However, concerns remain over the competitive position of Taiwanese exporters due to the TWD's strength, as highlighted by recent analyses.
Specifically, Bank of America has projected further appreciation of the TWD for the latter half of 2025, which may lead to sustained pressure on the USD/TWD exchange rate, especially if U.S.-China trade tensions create additional volatility in global markets. Overall, while the USD has shown some resilience, various economic indicators suggest that the TWD may continue to gain ground, potentially leading to a more favorable rate for transactions involving the Taiwanese dollar in the coming months.
