The Canadian dollar (CAD) has recently faced challenges, primarily due to slow progress in trade negotiations with the U.S., which is significant given that nearly 75% of Canada’s exports go to its southern neighbor. Analysts have noted that concerns over the U.S. imposing trade tariffs on Canadian goods have limited the upside potential for the CAD. The recent political leadership shift in Canada, following Prime Minister Justin Trudeau's resignation, has also added to the uncertainty surrounding the currency.
Recent data reveals that the CAD to TWD exchange rate is currently at 21.29, notably 3.7% lower than its three-month average of 22.1, indicating a trend of weakness. This exchange rate has exhibited considerable volatility, trading within an 11.7% range from 21.11 to 23.59. As the Canadian economy is heavily influenced by oil prices, fluctuations in the oil market remain critical; current prices are trading at $69.58 per barrel, marking a 4.1% increase above the three-month average of $66.81. This uptick could provide some support for the CAD, particularly as Canada is one of the world’s largest oil exporters.
The Bank of Canada's recent decision to pause interest rate cuts has also been a factor in stabilizing the CAD, with the benchmark rate currently at 2.75%. This monetary policy approach is intended to attract foreign investment, thus supporting the currency amidst ongoing trade tensions and geopolitical uncertainties.
For the Taiwan dollar (TWD), the imposition of a 32% tariff by the U.S. in the context of a broader trade war raises concerns for its stability. Additionally, global tech sector slowdowns and geopolitical tensions with China may further impact the TWD's performance.
For businesses and individuals looking to engage in international transactions involving CAD and TWD, these developments indicate the importance of closely monitoring market trends, commodity prices, and geopolitical events. Staying informed can aid in making more advantageous currency exchange decisions.