The New Taiwan Dollar (TWD) has shown some volatility recently, influenced by both domestic developments and external economic factors. As of early November 2025, TWD is trading at approximately 0.031986 against the USD, which is 1.9% below its three-month average of 0.032597. This indicates a generally stable trading range over the past few months, which has spanned from 0.031806 to 0.033255.
Taiwan's central bank recently raised its economic growth forecast to 4.55%, primarily attributing this to robust exports, especially in the semiconductor sector. However, analysts caution that the potential for rising U.S. tariffs could create significant headwinds for Taiwan’s export-driven economy. The interplay of these factors may influence future monetary policy decisions, prompting careful observation.
Currenly, the TWD has depreciated against major currencies, including the euro and the British pound. It is trading at 0.027563 against the EUR, which is 1.5% below the three-month average of 0.027981, and 0.024145 against the GBP, sitting at 1.1% below its average. This decline reflects a relatively stable yet slightly downward trend, as the TWD has traded within a narrow range against these currencies.
Additionally, enhanced financial regulations, such as the mandatory clearing of TWD interest rate swaps, set to take effect next July, are aimed at improving market transparency. However, heightened currency fluctuations are putting pressure on Taiwan’s life insurers, prompting them to increase their foreign exchange volatility reserves. This shift has led to adjustments in their hedging strategies, resulting in higher non-deliverable forward points for USD/TWD.
In terms of regional competition, the TWD has appreciated slightly against the Japanese yen, currently at 4.9930, which is above its three-month average of 4.9266. This suggests that while TWD faces challenges, it remains resilient in certain areas, providing potential opportunities for exporters and investors alike.
In summary, while the TWD exhibits stability against some currencies, it faces downward pressure against others, driven by both internal and external economic conditions. Close monitoring of tariff developments and market responses will be crucial for stakeholders engaged in international transactions.
