The New Taiwan Dollar (TWD) has recently experienced notable fluctuations influenced by various economic factors. As of mid-October 2025, the TWD to USD is trading at 90-day lows near 0.032327, which is 1.6% below its 3-month average of 0.032851. This depreciation comes as the currency has traded within a stable 3.8% range of 0.032327 to 0.033544.
The Taiwan Central Bank made headlines on September 18, 2025, when it raised its economic growth forecast for 2025 to 4.55%, up from 3.05%. This revision was largely attributed to robust export performance in sectors such as AI-related semiconductors. Despite this optimism, the central bank opted to maintain the benchmark interest rate at 2%, in line with expectations from economists.
Additionally, the TWD has recently been appreciating against the Euro, reaching 14-day highs near 0.028163, close to its 3-month average, with a tight trading range reflecting stability. The pairing with the British Pound is even more pronounced, as the TWD trades at 60-day highs near 0.024832, representing a 1.4% increase over its 3-month average of 0.024477. Analysts suggest this strength may be driven by Taiwan's strong export trajectory, though concerns regarding reduced export competitiveness for tech firms like TSMC persist amid the TWD's appreciation.
Moreover, the TWD to JPY is currently at 4.9669, which is 1.3% above its 3-month average of 4.9043, within a range of 4.8050 to 5.0206. This upward trend reflects ongoing market expectations of sustained strength in Taiwan's economy.
Bank of America has forecasted continued TWD appreciation against the USD in the latter half of 2025, bolstered by favorable export conditions and increasing corporate hedging activities. However, recent news on the potential negative impact of the TWD’s strength on local life insurance companies could create headwinds in the near term, as Fitch Ratings indicated concerns over insurer profitability due to currency movements.
In conclusion, while the TWD appears to be benefiting from overall favorable economic indicators, caution remains as the balance between currency strength and export competitiveness is monitored closely.
