Exchange Rate Calculator

Over the past 18 months, the exchange rate between the Hong Kong Dollar (HKD) and the New Taiwan Dollar (TWD) has experienced notable fluctuations. These movements reflect a combination of economic factors, monetary policies, and market sentiments influencing both currencies.

Exchange Rate Trends

2024 Overview

In 2024, the HKD/TWD exchange rate exhibited a general upward trend. The year commenced with the rate at approximately 3.9285 TWD per HKD on January 1, 2024. Throughout the year, the exchange rate experienced fluctuations, reaching its peak at 4.2286 TWD per HKD on December 27, 2024. The average exchange rate for the year was 4.1137 TWD per HKD. This upward movement indicates a strengthening of the Hong Kong Dollar relative to the New Taiwan Dollar over the course of 2024. (exchange-rates.org)

2025 Developments

The first half of 2025 presented a contrasting scenario. The exchange rate reached its highest point on March 31, 2025, at 4.2757 TWD per HKD. However, by June 27, 2025, the rate had declined to 3.7075 TWD per HKD, marking the lowest point in this period. The average exchange rate for the first half of 2025 stood at 4.0919 TWD per HKD. This downward trend suggests a depreciation of the Hong Kong Dollar against the New Taiwan Dollar during this timeframe. (exchange-rates.org)

Factors Influencing Exchange Rate Movements

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

1. Economic Indicators: Variations in GDP growth rates, inflation levels, and trade balances between Hong Kong and Taiwan can influence investor confidence and currency valuations.

2. Monetary Policies: Decisions by the Hong Kong Monetary Authority and the Central Bank of the Republic of China (Taiwan) regarding interest rates and monetary supply directly impact currency strength.

3. Global Market Sentiments: External factors, such as global economic conditions, geopolitical events, and shifts in investor risk appetite, can lead to capital flows that affect exchange rates.

4. Trade Relations: The trade dynamics between Hong Kong and Taiwan, including export and import volumes, can influence demand for respective currencies, thereby impacting the exchange rate.

Implications for Stakeholders

For businesses and investors engaged in Hong Kong and Taiwan markets, understanding these exchange rate trends is crucial. The appreciation of the Hong Kong Dollar in 2024 may have benefited Hong Kong exporters by making their goods more competitively priced in Taiwan. Conversely, the depreciation observed in the first half of 2025 could pose challenges for Hong Kong businesses importing from Taiwan due to increased costs.

Conclusion

The HKD/TWD exchange rate has demonstrated significant variability over the past 18 months, influenced by a complex interplay of economic indicators, monetary policies, and global market conditions. Stakeholders should remain vigilant, continuously monitoring these factors to make informed financial and operational decisions.