Taiwan Dollar: Growth and AI flows anchor TWD – Commerzbank
Commerzbank reports that USD/TWD traded steadily around 31.37, with realised one‑month volatility near 4.5%, lower than several regional peers. Taiwan’s Q1 Gross Domestic Product (GDP) was revised up sharply to 14.6% year-on-year, the strongest since 1987, driven by robust exports and AI-related semiconductor demand. DGBAS raised its full-year growth forecast to 9.6%, supporting ongoing capital inflows.
Strong GDP and AI cycle support TWD
"The final Q1 GDP was revised up more than expected to 14.6% yoy from 13.7% in the advance estimate (Bloomberg consensus: 13.7%) vs 13.0% in Q4 2025."
"DGBAS raised its full-year growth forecast to 9.6% from 7.7%, reflecting the stronger-than-expected demand for AI-related products."
"Looking ahead, growth momentum is expected to remain firm, driven by sustained AI-related demand."
"DGBAS expects this share to rise to 40% by year-end as tech firms fulfill its strong capex commitment to developing AI-related infrastructure."
"This low-volatility regime in USD/TWD is sustained by persistent inflows from the trade surplus and portfolio inflows linked to the AI-related equity rally."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Offchain Labs CEO makes the case for Arbitrum’s licensing model as Base walks away from Optimism revenue sharing
Microsoft shares rise over 3% as Azure tops $100B in annual revenue
