Taiwan Dollar (TWD) to USD: Exchange Rate and Influence on Foreign Trade

According to the latest exchange rate data, the exchange rate of the New Taiwan Dollar (TWD) to the United States Dollar (USD) in 2025 shows some volatility. Below is a consolidated analysis of recent and historical exchange rate trends:

 

● Over the past week, the TWD/USD exchange rate has fluctuated. it reached a high of US$0.031 on January 27, 2025 and dropped to a low of US$0.030 on February 3, 2025, a weekly decline of approximately -1.172%.
● Over the past 30 days: the exchange rate reached a high of 0.03066, a low of 0.03019, and an average of 0.03042, an overall decline of approximately 4.64%, indicating a depreciating trend of the TWD against the USD.

 

● From 2020 to 2025, the TWD/USD exchange rate shows an overall downward trend, indicating a gradual depreciation of the TWD relative to the USD.
● Historical high: August 1985, 1 USD = 40.501 TWD.
● Historical low: June 1992, 1 USD = 24.770 TWD.

 

Fluctuations in the TWD/USD exchange rate are influenced by many factors, including the global economic situation, monetary policy, and trade relations.

Overall, the TWD/USD exchange rate in 2025 shows a certain depreciation trend, reflecting the depreciation of the TWD relative to the US dollar, which may continue to be influenced by a number of factors.

You can visit XTransfer currency exchange platform. It'll provide you with the most up-to-date USD to RMB exchange rate information.

Exchange rate fluctuations of the TWD against the USD have far-reaching impacts on cross-border trade between Taiwan and the U.S. These impacts are not only reflected in import and export trade, but also involve trade settlements, capital flows, and the global layout of enterprises. With the changes in the global economic situation, especially the U.S.-China economic confrontation and changes in the international market, exchange rate volatility has become an increasing challenge for Taiwan's foreign trade enterprises.

Impact of Import and Export：
● Appreciation of the TWD: When the new Taiwan dollar appreciates, the price of Taiwan's exports to the United States will rise in US dollars, which may reduce exports, but the cost of imported goods will fall due to the exchange rate advantage, stimulating import demand.

● Depreciation of TWD: In contrast, when the Taiwan dollar depreciates, Taiwan's exports will become more price competitive in the US market, which may increase exports, but the cost of imported goods will rise, which may hurt Taiwan's import trade.

Taiwan has close trade ties with the U.S., and U.S. exports to Taiwan are high in value, so fluctuations in the exchange rate have a direct impact on the trade balance and trade surplus between the two countries. 

Trade Surplus and Exchange Rate Manipulation After Taiwan's trade surplus with the United States reaches a certain amount, it may cause the U.S. side to be concerned about Taiwan's exchange rate manipulation. If Taiwan's exchange rate policy is recognized as exchange rate manipulation, it may face tariff sanctions from the United States. Such a scenario would have a significant impact on Taiwan's cross-border trade, so Taiwan must respond to exchange rate fluctuations carefully to prevent unnecessary trade frictions.

Central Bank Intervention and Market Reaction In order to maintain financial stability, Taiwan's central bank may intervene in the foreign exchange market. However, if it is recognized as intervening in the exchange rate, it may have a negative impact on Taiwan's international image and trade relations, which in turn may affect the stability of cross-border trade.

 

Trade wars and exchange rate changes Trade wars may not only lead to a depreciation of the NTD, but may also have a wide-ranging impact on the stock and exchange markets.

Enterprises need to take effective hedging measures to cope with the risks arising from exchange rate fluctuations. can be used to lock in the exchange rate to reduce the impact of exchange rate fluctuations on costs and profits. At the same time, the choice of appropriate settlement currency is also an important means of reducing the risk of exchange rate fluctuations.

Global Layout and Diversification Risks In the face of external factors such as the U.S.-China economic confrontation, Taiwanese companies need to make global layouts to reduce their dependence on a single market and reduce the risks associated with exchange rate fluctuations and policy changes through diversification security measures.

Small and medium-sized enterprises tend to be more vulnerable in the face of exchange rate volatility. They have weaker risk tolerance. Exchange rate fluctuations may lead to large changes in the profits and operating conditions of these enterprises, and they may even face losses.