USD/TWD: Taiwan Dollar to strengthen in medium term on the rebound of AI investment – MUFG

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The Taiwan Dollar extended losses to the lowest against the US Dollar since November 2022. Economists at MUFG Bank analyze USD/TWD outlook. USD/TWD to

range-bound While overall external demand remains weak and USD remains strong, the marginal recovery of semiconductor sector and potential upside on CNY likely lend some support for the currency.

Net, we expect USD/TWD to range-bound but with a upside bias for TWD against the Dollar in near term, before TWD’s strengthening in medium term on the rebound of AI investment. USD/TWD – Q4 2023 32.00 Q1 2024 31.80 Q2 2024 31.40 Q3 2024 31.00

 

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