Home›Forex›Major Pairs›Taiwan dollar seen consolidating as CBC holds policy r…

Taiwan dollar seen consolidating as CBC holds policy rate at 2%

Commerzbank expects USD/TWD to trade around a 31.50 to 32.00 range near term, with risks tilted to the downside if the US dollar weakens broadly.

Reported · Written up by our desk · Major Pairs

FXStreet reports that Commerzbank expects the Taiwan dollar to remain in a near term consolidation range against the US dollar, citing a supportive economic backdrop tied to AI-driven exports and Taiwan’s external surplus.

The bank points to Taiwan’s strong growth, noting Q2 GDP expanded 12.9% year over year, and that the government raised its 2026 growth forecast to 11.05%, even as inflation is described as contained at about 2.1% this year.

Commerzbank also expects the Central Bank of the Republic of China to keep its policy rate unchanged at 2%, with the next decision scheduled for 17 September, and says the CBC is likely to continue intervening to smooth volatile capital flows.

It adds that the Taiwan dollar has been broadly flat versus the US dollar year to date, and that Commerzbank sees scope for further appreciation being limited by the central bank’s sensitivity to the pace of TWD strength.

More like this

Sources