Forecasts for USD to TWD
Recent forecasts and market updates indicate a mixed outlook for the USD to TWD exchange rate. Analysts reported that the US dollar has recently shown strength amid a risk-averse market environment, particularly in anticipation of the FOMC minutes which are expected to affirm the Federal Reserve’s hawkish stance. This perceived strength of the dollar has been bolstered by geopolitical uncertainties, drawing investors towards the safety of USD and U.S. Treasury bonds.
However, concerns about the U.S. economy are beginning to surface as GDP figures are expected to reveal a 0.3% contraction in the first quarter. Should the actual data fall below forecasts, it may reignite fears of a looming recession, potentially weighing down the value of the US dollar. Additionally, recent tariffs imposed as part of the trade war, including a significant 32% reciprocal tariff on goods from Taiwan, could further strain trade relations and impact the TWD.
The current exchange rate for USD to TWD at 29.92 is notably lower—6.3% below its three-month average of 31.92—indicating volatility in the currency pair. Over the last three months, the USD to TWD has ranged between 29.18 and 33.27, reflecting the fluctuating market conditions tied to both economic performance and geopolitical factors.
Experts suggest that while the strengthening of the dollar is often seen as a positive development for USD, further tariff escalations and geopolitical tensions between Taiwan and China are likely to affect the TWD's stability. The ongoing global tech slowdown also poses risks, considering Taiwan's significant role in the technology sector. Overall, the future direction of the USD to TWD exchange rate will heavily depend on the interplay of U.S. economic indicators, Federal Reserve policies, and the broader geopolitical landscape in the region.
