The New Taiwan Dollar (TWD) has been experiencing notable shifts in its exchange rates, influenced by various economic factors and policies. Recently, TWD to USD is approaching a 90-day low at 0.031637, which is 1.5% below its three-month average of 0.032114. The stability of this pair has been reflected in a narrow trading range of 3.5%, remaining between 0.031637 and 0.032730.
Meanwhile, TWD to EUR is trading at 0.027191, sitting 1.4% below its three-month average of 0.027586, within a stable range of 4.5% between 0.026971 and 0.028181. The TWD to GBP has also seen a decline, currently at 0.023598, which is 2.2% below its average of 0.024135. This pair has fluctuated within a 5.8% range from 0.023466 to 0.024832, indicating a slightly more volatile market compared to other major currencies.
Conversely, the TWD to JPY has held firm, trading at 4.9951, just above its three-month average, maintaining a less volatile range of 2.9% from 4.9109 to 5.0545.
Several key developments impact the TWD's outlook. Notably, Taiwan's central bank has committed to avoiding manipulation of the exchange rate, aligning with U.S. Treasury policies for fairness in currency practices. This commitment may support the TWD's stability in the international market. Additionally, Taiwan's planned investment boost of NT$1 billion in Latin America for 2026 may foster new economic ties and influence currency dynamics.
Economic analysts from the Chung-Hua Institution for Economic Research have suggested that exchange rate volatility will remain a significant factor next year, recommending that businesses adopt hedging strategies to mitigate risks associated with these fluctuations. The recent mandatory clearing of interest rate swaps is also expected to enhance market transparency and contribute to financial stability.
As these developments unfold, participants in the currency market, including small businesses and travelers, may want to closely monitor the TWD's performance against major currencies and consider strategic approaches to manage their foreign exchange transactions effectively.
