Outlook
The TWD is expected to stay steady as policy remains at 2.00% and exports stay robust. AI investment boosts growth, while quarterly FX disclosures ease volatility without daily rate targets in the near term.
Key drivers
- Stable Monetary Policy: The central bank holds at 2.00% through 2026, supported by low inflation.
- Resilient Export Performance: ICT and electronics keep demand solid for Taiwan.
- AI Investment Impact: AI spending strengthens resilience and tech-led growth.
- Currency Volatility Management: FX disclosures are quarterly to damp swings.
Range
TWD/USD 0.031857 near its 3-month average, within 0.031569–0.032166. TWD/EUR 0.026956 just below its 3-month average, in a 0.026598–0.027621 range. TWD/GBP 0.023626 just above its 3-month average, in a 0.023091–0.024146 band. TWD/JPY 4.9715 just above its 3-month average, in a 4.8549–5.0388 band.
What could change it
- Unexpected policy path shifts.
- Changes in global risk appetite affecting demand for Asian assets.
- Shifts in export momentum or AI pace.
- Large FX intervention or policy guidance.
