The New Taiwan Dollar (TWD) has recently shown resilience in the currency markets, influenced by positive economic projections and fluctuations in export dynamics. As of October 19, 2025, the TWD is trading at 0.032475 against the USD, which is 1.2% below its three-month average of 0.03288. This relatively stable performance has been evident as the TWD has maintained a range of just 3.8% over the past three months, from 0.032417 to 0.033648.
A significant driver of the TWD's strength is the central bank's revised economic growth forecast, which was recently raised to 4.55% for 2025, thanks to robust exports, particularly from the semiconductor sector. The decision to keep the benchmark interest rate unchanged at 2% aligns with expectations from economic analysts and reinforces confidence in the currency.
However, the appreciation of the TWD has raised concerns among exporters, particularly in the technology sector, as it could diminish competitiveness in international markets. Earlier this year, the TWD surged over 9% against the USD, driven by reduced exports from China and corporate currency hedging strategies. Moreover, Fitch Ratings highlighted potential profitability issues for life insurance companies amid the currency strength, placing several insurers on 'Rating Watch Negative'.
Recent forecasts from Bank of America suggest that the TWD may continue to appreciate against the USD in the latter half of 2025, reflecting strong export performance. Meanwhile, the TWD's exchange rate against the Euro recently reached a 14-day high near 0.028172, closely mirroring its three-month average, while the TWD to GBP at 0.024726 is 1.0% above its three-month average. Furthermore, against the Japanese yen, the TWD trades at 5.0071, which sits 2.1% above the three-month average.
As market conditions evolve, stakeholders should remain cognizant of the TWD's trajectory, especially in relation to export competitiveness and central bank policies.
