Description
The USD/TWD exchange rate reflects the amount of New Taiwan dollars (TWD) required for one U.S. dollar (USD). Movements in the USD/TWD exchange rate are influenced by various factors, including the monetary policies of the U.S. Federal Reserve (Fed) and Taiwan's central bank, global economic trends, trade balances, and capital flows.
Taiwan plays a key role in the global semiconductor industry, with its trade activity heavily concentrated in technology products. As a result, Taiwan’s export performance has a significant impact on the TWD exchange rate.
A lower USD/TWD exchange rate indicates a stronger New Taiwan dollar, which helps reduce import costs but may weaken export competitiveness. Conversely, a higher USD/TWD rate suggests a weaker TWD, benefiting exports but increasing import costs.