TWD to USD 2025 Forecasts

03 JunRecent forecasts and market updates indicate that the USD to TWD exchange rate is under significant pressure due to ongoing trade policy uncertainties and economic concerns in the United States. Analysts have noted that the US dollar has weakened amid renewed tensions between the US and China, exacerbated by President Donald Trump's announcement of increased tariffs on metals and potential tariffs on a broad range of imports. The ISM manufacturing PMI has also indicated a slowdown in the US factory sector, further contributing to negative sentiment around the dollar.

Furthermore, reports suggest that the US labor market is showing signs of cooling, which could lead to continued declines for the dollar if the upcoming Job Openings and Labor Turnover survey confirms these trends. As the dollar retreats, concerns are mounting regarding potential recessions and the alleged intentions of the Trump administration to weaken the currency to favor American interests. Observers have pointed to the so-called "Mar-a-Lago Accord," which aims to reshape global trade and financial systems in a way that benefits the US.

On the other hand, the Taiwan dollar (TWD) faces its challenges as well. A 32% reciprocal tariff imposed by the US on Taiwanese goods amidst the trade conflict could weigh heavily on TWD's strength. Additionally, economic analysts are cautious about the global tech sector's health, as Taiwan houses prominent technology manufacturers. Concerns over geopolitical tensions with China, including the looming threat of invasion, may also impact the TWD significantly.

Currently, the USD to TWD exchange rate is hovering near 30.00, marking a 7-day high but still about 5.7% lower than its 3-month average of 31.83. This volatility, with trading activity ranging from 29.18 to 33.27 in recent months, reflects the uncertainties in both economies. Forecasters are cautious in their outlook, emphasizing the importance of monitoring economic indicators and geopolitical developments that could sway the momentum of the USD and TWD in the near future. The interplay of US economic policies and international trade dynamics will be critical in determining the trajectory of the USD to TWD exchange rate.