USD/TWD to move towards 29 by year-end – ANZ

Economists at ANZ bank remain positive on TWD and expect continued foreign inflows to support the currency. Therefore, they see USD/TWD trading at 29.25 by the end of the year, with a bigger move towards 29 on the cards.

Key quotes

“We have a positive view on TWD, and expect a further appreciation into the end of the year. Our end-2019 target for USD/TWD is 29.25, with a bigger move towards 29 possible.”

“Thanks to ample global liquidity which is an important push factor for portfolio flows and a strong pull factor in the form of Taiwan’s domestic economic performance, we can expect to see sustained foreign inflows into Taiwan which will be supportive of the TWD.”

“The tech heavy nature of Taiwan’s exports, which has seen increased demand to meet the needs of a global workforce that has been forced to work from home, is also another positive driver for the TWD.”