Exchange Rate Calculator

The exchange rate between the Canadian Dollar (CAD) and the New Taiwan Dollar (TWD) has experienced notable fluctuations over the past few months. This report analyzes the recent trends, identifies key factors influencing these movements, and provides insights into the future outlook of the CAD/TWD exchange rate.

Recent Exchange Rate Trends

Over the past six months, the CAD/TWD exchange rate has exhibited significant volatility. According to data from Exchange Rates UK, the highest rate during this period was 23.548 TWD per CAD on April 20, 2025, while the lowest was 21.111 TWD per CAD on May 5, 2025. (exchangerates.org.uk) This represents a fluctuation of approximately 10.3% within a short timeframe.

In the first quarter of 2025, the exchange rate remained relatively stable, averaging around 22.9 TWD per CAD. However, in April, the rate peaked at 23.548 TWD per CAD, followed by a sharp decline in May to 21.111 TWD per CAD. By June, the rate showed signs of recovery, stabilizing around 21.7 TWD per CAD.

Factors Influencing Exchange Rate Movements

Several factors have contributed to the observed fluctuations in the CAD/TWD exchange rate:

1. Economic Indicators: Canada's economic performance, including GDP growth and employment rates, influences the strength of the CAD. Similarly, Taiwan's export-driven economy and technological sector performance impact the TWD. Disparities in these indicators can lead to exchange rate adjustments.

2. Interest Rate Differentials: The Bank of Canada's monetary policy decisions, such as interest rate changes, affect the attractiveness of the CAD to investors. If Canada's interest rates rise relative to Taiwan's, the CAD may appreciate against the TWD, and vice versa.

3. Commodity Prices: Canada is a major exporter of commodities like oil and natural gas. Fluctuations in global commodity prices can impact Canada's trade balance and, consequently, the value of the CAD.

4. Geopolitical Events: Trade agreements, political stability, and international relations can influence investor confidence and currency valuations. For instance, tensions in the Asia-Pacific region or changes in trade policies between Canada and Taiwan can affect the exchange rate.

Future Outlook

Predicting future exchange rate movements involves considerable uncertainty due to the interplay of various factors. However, some potential scenarios include:

• Economic Recovery: If Canada's economy continues to recover post-pandemic, with strong GDP growth and employment figures, the CAD may strengthen against the TWD.

• Monetary Policy Adjustments: Should the Bank of Canada decide to increase interest rates to curb inflation, the CAD could appreciate relative to the TWD.

• Global Trade Dynamics: Changes in global trade patterns, especially concerning Taiwan's export markets, could influence the TWD's value.

Conclusion

The CAD/TWD exchange rate has experienced notable fluctuations in recent months, influenced by economic indicators, interest rate differentials, commodity prices, and geopolitical events. While the future trajectory of the exchange rate remains uncertain, monitoring these factors can provide valuable insights for businesses and investors engaged in CAD/TWD transactions.