The New Taiwan Dollar (TWD) has recently shown resilience despite concerns surrounding U.S. tariffs and global trade tensions. The central bank's decision on June 19, 2025, to maintain its benchmark interest rate at 2% reflects confidence in Taiwan's technology-driven economy, which continues to grow at an expected rate of 3.05% for 2025. This stability is further underscored by inflation remaining below 2%, providing a supportive backdrop for the TWD.
In early May 2025, the TWD experienced a significant rally, appreciating roughly 8% over two days. However, this sharp increase raised alarms about the currency's potential impact on Taiwan's export competitiveness. The central bank has proactively responded by encouraging banks to follow foreign exchange settlement rules to stabilize the markets, acknowledging the volatile nature of the TWD and the pressures exerted by external factors.
Currently, the TWD to USD exchange rate stands at 7-day highs near 0.032648, which is about 1.4% lower than its three-month average of 0.033108. The pair has traded within a stable range of 5.2%, from 0.032514 to 0.034189. Meanwhile, the TWD to EUR sits at 0.027992, reflecting a similar trend and is 1.2% below its three-month average of 0.028346, with a stable range observed from 0.027878 to 0.029357.
Contrarily, the TWD to GBP has dipped to 30-day lows around 0.024302, also about 1.2% beneath its three-month average of 0.02461, fluctuating in a 5.2% range. The TWD to JPY remains steady, trading at 4.9161 and aligned closely with its three-month average, indicating a stable trading environment.
Analysts suggest that while the TWD's current levels indicate a healthy currency market, continuous monitoring of international trade relations and domestic economic policies will be crucial for future fluctuations. Stakeholders should remain informed about potential impacts from U.S. tariffs and the central bank's policy stance, which may further influence the TWD's trajectory in the coming months.
