TWD to CAD 2025 Forecasts

04 JunRecent forecasts for the Canadian dollar (CAD) against the Taiwan dollar (TWD) highlight several key factors influencing the exchange rate. The CAD has rallied in conjunction with oil prices, reflecting its status as a commodity-linked currency. As of the latest data, CAD to TWD has reached 14-day highs at approximately 21.88, although it remains 3.5% below its three-month average of 22.66. Analysts note that the exchange rate has experienced considerable volatility, trading within a broad 11.7% range from 21.11 to 23.59.

The price of Brent Crude oil is critical in this context, as Canada is one of the world’s largest oil exporters. Currently, oil trades at around $65.63 per barrel, which is 2.1% beneath its three-month average of $67.01. The crude market's volatility, with a notable range of 24.7% from $60.14 to $75.02, directly impacts investor sentiment towards the CAD. A rise in oil prices typically strengthens the CAD, while declines can lead to depreciation as seen in other commodity-linked currencies.

The upcoming Bank of Canada (BoC) interest rate decision is also significant for the CAD outlook. While no immediate changes are projected, any cautious tones from the BoC regarding economic growth could lead to a slip in the CAD. Higher interest rates would generally attract foreign investment, bolstering the currency, but current economic uncertainties may influence policymaking.

Additionally, the Taiwan dollar (TWD) faces pressures from a complex set of factors, including geopolitical tensions with China and the impact of a slowing global tech sector, which could dampen demand for Taiwanese exports. The recent 32% tariff imposed by the U.S. on Taiwanese goods further complicates this outlook. Experts suggest that fluctuations in the CAD-TWD exchange rate will continue to depend not only on the performance of oil prices and Bank of Canada policies but also on the broader economic environment affecting Taiwan.

Overall, the CAD's trajectory against the TWD will be shaped by the interplay of these dynamics, making it crucial for businesses and individuals involved in international transactions to stay informed.