Search ForexCrunch

TWD has remained an outperformer, with a 0.4% gain against the USD in February as the New Taiwan dollar is the largest beneficiary of the global chip shortage. Economists at ANZ Bank expect USD/TWD to remain heavy, despite the central bank’s support of the USD.

Key quotes

“The shortage in semiconductors, which has hit many sectors, including the automobile industry, could last through H1 2021. This will likely keep Taiwan’s trade surplus close to record highs in the coming months, which bodes well for TWD.”

“We think TWD is well-positioned to benefit from the strong demand for high-end chips. Even though the Fed has been supporting the USD, especially in recent months given the sharp rise in official reserves, USD/TWD continues to trade around 28.0, the lowest in over two decades.”

 

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.