The Taiwan Dollar (TWD) is currently facing significant pressures due to both domestic and international factors. Recent reports indicate that the TWD is trading at 30-day lows against the US dollar (USD), at approximately 0.033702. This is just above its three-month average but reflects a volatile trading range of 11.8%—between 0.030924 and 0.034572. Analysts suggest that the imposition of a 32% reciprocal tariff by the US on Taiwanese goods, as part of ongoing trade tensions, could further weigh on the currency.
Compounding this issue, a potential global tech slowdown poses risks to Taiwan’s economy, which heavily relies on its robust technology sector. Major players in semiconductor and electronics manufacturing are particularly vulnerable to downturns in demand, which could negatively impact the TWD.
Geopolitical tensions, especially concerning the threat of a Chinese invasion, are also affecting the currency's stability. Forecasters note that heightened tensions can lead to increased volatility in the TWD, impacting both investor sentiment and trade flows.
against the Euro (EUR), the TWD trades at 0.029061, which is only 0.6% below its three-month average of 0.029229. This pair has experienced a slightly less volatile range of 11.5%, from 0.027160 to 0.030288. Meanwhile, the TWD to British pound (GBP) exchange rate stands at 0.025232, showing a resilience of 1.2% above its three-month average, within an 11.8% trading range.
In contrast, the TWD is observing stronger performance against the Japanese yen (JPY), currently at 5.0041 and 2.5% above its three-month average. This currency pair has been notably volatile, ranging 15.0% from 4.4020 to 5.0628.
Overall, as market participants navigate through these uncertainties, keeping a close eye on tariff developments and regional geopolitical dynamics will be crucial in forecasting further movements of the TWD in the foreign exchange market.